Question
A company gives a quotation for a job which requires 85 kg of materials @ 9.30 per kg, 16 direct labour hours @ 35
A company gives a quotation for a job which requires 85 kg of materials @ 9.30 per kg, 16 direct labour hours @ 35 per hour and overheads recovered on the basis of direct labour hours, at 15 per hour. A mark-up of 100% is added. If the actual direct labour hours worked on the job were 20, what would the profit have been, assuming that the quoted price could not be renegotiated?
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Accounting and Finance An Introduction
Authors: Peter Atrill, Eddie McLaney
8th edition
129208829X, 1292088297, 978-1292088297
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