A Shoes manufacturing business produces quality customized footwear to client's orders. The units were manufactured as...

  

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A Shoes manufacturing business produces quality customized footwear to client's orders. The units were manufactured as Job #240. It has three production departments A, B and C whose overhead absorption rates are as follows: A B $190 per labour hour $156 per labour hour $168 per labour hour C Direct production costs incurred are: Direct Materials Labour: $5000 Dept A Dept B 40 hours @ $90.00 per hour 20 hours @ $70.00 per hour 10 hours @ $50.00 per hour Dept C General administrative expense is 25% of total cost. Profit is to be calculated at 20% mark-up. A Shoes manufacturing business produces quality customized footwear to client's orders. The units were manufactured as Job #240. It has three production departments A, B and C whose overhead absorption rates are as follows: A B $190 per labour hour $156 per labour hour $168 per labour hour C Direct production costs incurred are: Direct Materials Labour: $5000 Dept A Dept B 40 hours @ $90.00 per hour 20 hours @ $70.00 per hour 10 hours @ $50.00 per hour Dept C General administrative expense is 25% of total cost. Profit is to be calculated at 20% mark-up.

Answer rating: 100% (QA)

A To calculate the selling price for job 240 we need to determine the total cost of the job and then apply the desired profit margin Calculate the ove... View the full answer