Flight has two products, the ‘Takeoff’ and the ‘Landing’. They go through two departments and incur the following costs:

Takeoff’s indirect overheads are absorbed at £7 per labour hour for Dept. A and £5 per hour Dept. B. Landing’s indirect overheads are absorbed at £6 per labour hour for Dept. A and £4 per hour for Dept. B. Selling price is to be 20% on cost.

Required:

The prices for which Flight should sell ‘Takeoff’ and ‘Landing’.

Transcribed Image Text:

Takeoff Landing Dept. B- Dept. A Direct labour 10 hours Direct materials 10 kilos Direct labour Direct materials 5 kilos 10 per hour 9 hours 7 per hour 5 per kilo 7 kilos 12 per kilo 8 hours 12 per hour 5 hours 8 per hour 15 per kilo 6 kilos 10 per kilo