Question
a) Which of the following are likely to use service costing? Justify your answer in each case. (3 marks) (i) A college (ii) A hotel
a) Which of the following are likely to use service costing? Justify your answer in each case.
(3 marks)
(i) A college
(ii) A hotel
(iii) A plumber
b) The following information relates to a management consultancy organisation:
$
Salary cost per hour for senior consultants 40
Salary cost per hour for junior consultants 25
Overhead absorption rate per hour applied to all hours 20
The organisation adds 40% to total cost to arrive at the final fee to be charged to a client.
Client number 209 took 54 hours of a senior consultant's time and 110 hours of junior consultants' time.
Required: What is the final fee to be charged for Client number 209? (4 marks)
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