A firm uses job costing and recovers overheads as a percentage of direct labour cost.

Three jobs were worked on during a period, the details of which are as follows.

The overheads for the period were exactly as budgeted, $140,000.
Job 3 was completed during the period and consisted of 2,400 identical circuit boards. The firm adds 50% to total production costs to arrive at a selling price.

What is the selling price of a circuit board?

A It cannot be calculated without more information B $31.56 C $41.41 D $55.21

Transcribed Image Text:

Job 1 Job 2 Job 3 $ $ $ Opening work in progress 8,500 0 46,000 Material in period 17,150 29,025 0 Labour for period 12,500 23,000 4,500