Question
Aston Villa Ltd makes windscreens for cars. Management has decided they would like to implement a full cost recovery system as detailed below. The overhead
Aston Villa Ltd makes windscreens for cars. Management has decided they would like to implement a full cost recovery system as detailed below.
The overhead recovery rate is based on direct labour cost. Profit (mark-up) will be 12% of full costs.
Annual Budget Forecast$
Direct Materials50,000
Direct Labour60,000
Variable Overheads2,400
Advertising for Business4,000
Rent of Premises10,000
Depreciation20,000
Administration expenses12,000
A job order for 300 windscreens costing $5,000 indirect materials and $6,000 in direct labour has been received.How much should be charged for the job in total (to the nearest dollar)?
Select one:
$15,840
$14,436
$11,000
$17,741
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