A company operates a job costing system. The company$$s standard net profit margin is $20\%$ of sales value. The estimated costs for job B$124$ are as follows: Direct material $3$ kg @ $$5$ per kg Direct labour $4$ hours @ $$9$ per hour Production overheads are budgeted to be $$240,000$ for the period, to be recovered on the basis of a total of $30,000$ labour hours. Other overheads, related to selling, distribution and administration, are budgeted to be $$150,000$ for the period. They are to be recovered on the basis of the total budgeted production cost of $$750,000$ for the period. What price should be quoted for job B$124($to the nearest cent$)?$

Answer rating: 100% (QA)

To determine the price that should be quoted for job B124 we need to calculate the t... View the full answer