A printing firm operates a job costing system. Production overhead is absorbed at the rate of...

Transcribed Image Text:

A printing firm operates a job costing system. Production overhead is absorbed at the rate of K85.00 per machine hour. In order to allow for non-production overhead costs and profit, a mark-up of 60% of prime cost is added to the production cost when estimating the price to quote for the job. The estimated requirements for job number 101 are as below: Direct materials Direct labour Machine hours K106,500 K32,600 140 Required: Calculate the estimated price to be communicated to the customer for job number 101. A printing firm operates a job costing system. Production overhead is absorbed at the rate of K85.00 per machine hour. In order to allow for non-production overhead costs and profit, a mark-up of 60% of prime cost is added to the production cost when estimating the price to quote for the job. The estimated requirements for job number 101 are as below: Direct materials Direct labour Machine hours K106,500 K32,600 140 Required: Calculate the estimated price to be communicated to the customer for job number 101.

Answer rating: 100% (QA)

The detailed ... View the full answer