PL Printing Ltd has been asked by a customer to prepare a quotation to produce 50,000 printed
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PL Printing Ltd has been asked by a customer to prepare a quotation to produce 50,000 printed sales leaflets. The following information is available for PL Printing Ltd for the current year.
Overheads are recovered on the basis of the number of machine hours. The company's work is charged to customers on the basis of cost plus 40 per cent.
The company estimates that the following costs will be incurred on the batch.
Required
a. Calculate the total cost of producing the 50,000 leaflets.
b. Calculate the total cost per 1000 leaflets.
c. Calculate the amount of the quotation to be sent to the customer.
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ANSWER a Calculation of Total Cost of Producing 50000 Leaflets Direct Materials Cost Paper Ink Pa...View the full answer
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Abdul Wahab Qaiser
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