Sustain Ltd manufactures solar panels. For next month, the firm expects its direct labour cost to be
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Sustain Ltd manufactures solar panels. For next month, the firm expects its direct labour cost to be £34,800 and the manufacturing overhead to be £11,600. The firm is also aware that the production needs for next month require 2,900 direct labour hours, paid at the same hourly rate. In addition, the firm uses direct labour hours as the basis for overhead absorption. A customer placed a new order to Sustain Ltd. The firm estimates that the new order will require 425 direct labour hours to deliver, and direct materials that will cost £5,200. What is the full cost for the order placed by the customer? Calculate.
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0133428704
15th edition
Authors: Charles T. Horngren, Srikant M. Datar, Madhav V. Rajan
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