In Fiona's product workshop, a particular job, known as VT17, consumed £6,900 of materials, and incurred 60 hours of direct labour during March 20X2. The relevant total production data during March 20X2 were as follows. Production department 160,000 Direct wages (£) Budgeted overheads chargeable (£) 120,000 Direct labour hours worked 10,000 Required: Calculate to the nearest £ the total production cost of job VT17 if overheads are absorbed on the basis of direct labour hours.

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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In Fiona's product workshop, a particular job, known as VT17, consumed
£6,900 of materials, and incurred 60 hours of direct labour during March
20X2.
The relevant total production data during March 20X2 were as follows.
Production
department
160,000
Direct wages (£)
Budgeted overheads chargeable (£)
120,000
Direct labour hours worked
10,000
Required:
Calculate to the nearest £ the total production cost of job VT17 if overheads
are absorbed on the basis of direct labour hours.
Transcribed Image Text:In Fiona's product workshop, a particular job, known as VT17, consumed £6,900 of materials, and incurred 60 hours of direct labour during March 20X2. The relevant total production data during March 20X2 were as follows. Production department 160,000 Direct wages (£) Budgeted overheads chargeable (£) 120,000 Direct labour hours worked 10,000 Required: Calculate to the nearest £ the total production cost of job VT17 if overheads are absorbed on the basis of direct labour hours.
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