Saved Bookmarks
| 1. |
The budgeted expenses of three departments of Raja engineering company forthe year 2014- 15 are as follows:A B CDirect material 120000 95000 90000Direct wages 115000 80000 80000Factory overheads 95000 65000 63750Administrative overheads20000 20000 12000Direct labour hours 1000 13000 7500The company recovers factory overheads at direct labour rates and administration overheads as percentage of factory cost. The direct costs and labour hours incurred on job number 26 completed during the year are as follows:Department A Department B Department CDirect material 6000 5000 4000Direct wages 4200 3300 2250Direct labour hours 1000 1200 600What price should be charged for job number 26 to include a profit of 10% on cost? |
| Answer» | |