Assist in calculating the job cost. A business operates a job costing system and has the aim
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Assist in calculating the job cost.
A business operates a job costing system and has the aim of making a net profit of 30% of net sales. Cost estimates for one particular job are as follows:
Direct materials: 80 Kg at $5 per kg
Direct Labour:40 hours at $6 per hour
The total overheads are budgeted at $120,000 and are absorbed on the basis of direct labor hours. The budgeted labor hours are 50,000.
What price should be quoted for this job (to the nearest $)?
Related Book For
Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta
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