18.4A Dillinger Thompson Limited produces a line of leather bags. Although they vary slightly in design the
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18.4A Dillinger Thompson Limited produces a line of leather bags. Although they vary slightly in design the cost structure is the same for each bag. The company's budget for January 20X5 is as follows:
£
Sales: 4 000 units x £22.00 88 000 Costs Direct materials: 4 000 x (1 square metre x £6.50) (26 000)
Direct labour: 4 000 x (0.5 hours x £7.80) (15 600)
Production overhead (24 000)
22 400 Selling and administrative overhead (6 000)
Net profit 16 400
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Business Accounting And Finance For Non Specialists
ISBN: 9781861528728
1st Edition
Authors: Catherine Gowthorpe
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