Boats Ltd provides a boat repair service. Each month 8,000 direct labour hours are worked and charged to cost units (jobs carried out by the business). The business has overheads of £120,000 each month. A recent boat repair undertaken by the business used direct materials costing £2,215. Direct labour worked on the repair was 32 hours and the wage rate is £16 an hour. The business charges overheads to jobs on a direct labour hour basis. What is the full (absorption) cost of the job?

Boats Ltd provides a boat repair service. Each month 8,000 direct labour hours are worked and charged to cost units (jobs carried out by the business). The business has overheads of £120,000 each month. A recent boat repair undertaken by the business used direct materials costing £2,215. Direct labour worked on the repair was 32 hours and the wage rate is £16 an hour. The business charges overheads to jobs on a direct labour hour basis. What is the full (absorption) cost of the job?

Marketing

20th Edition

ISBN:9780357033791

Author:Pride, William M

Publisher:Pride, William M

Chapter19: Pricing Concepts

Section: Chapter Questions

Problem 6DRQ

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