A job requires 70 kilograms of materials, 7 direct labour hours and overheads are allocated at £2 per direct labour hour. Materials cost £5 per kilogram and direct labour costs are £12 per hour.

What is the relevant cost of this job for decision-making purposes (labour costs are not avoidable)?

1. £350

2. No answer is correct

3. £448

4. £364

5. £434

Answer rating: 100% (QA)

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