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Custom Campers Pty Ltd makes camper trailers. They use a job costing system, with overheads allocated on a direct labour hour basis. The following figures

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Custom Campers Pty Ltd makes camper trailers. They use a job costing system, with overheads allocated on a direct labour hour basis. The following figures are budgeted for the upcoming year: Depreciation of machinery $18,000 Rent and rates $44,000 Heating, lighting and power $35,000 Other indirect costs $12,000 Direct labour time ($25/hr) 6,500 hours A customer requests a camper. The direct materials for the trailer will be $4,600 and it will require 120 direct labour hours. Required: a) Calculate the overhead recovery rate. b) Calculate the full cost of the camper requested by the customer. c) How much should Custom Campers charge for the camper if they want to make a 40% profit

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