Johnson Ltd provides a personal computer maintenance and repair service. It has overheads of 10,000 each month.

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Johnson Ltd provides a personal computer maintenance and repair service. It has overheads of £10,000 each month. Each month 1,000 direct labour hours are worked and charged to cost units (jobs carried out by the business). A particular laptop repair undertaken by the business used direct materials costing £15. Direct labour worked on the repair was 3 hours and the wage rate is £16 an hour. Johnson Ltd charges overheads to jobs on a direct labour hour basis. What is the full (absorption) cost of the repair?

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Accounting An Introduction

ISBN: 9780273733201

5th Edition

Authors: Eddie McLaney, Dr Peter Atrill, Eddie J. Mclan

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