Doggie Veterinary Practice has overheads of $11 000 each month. Each month 300 direct labour hours are worked and charged to specific jobs, each of which involves minor operations on domestic pets. The business has received an enquiry from Theodore Kennels, which wants Doggie to take on a regular contract to provide veterinary services to Theodore's dogs Doggie estimates that taking on the contract will have the followin financial implications per month Click here to view financial information.) overheads are charged to jobs on a direct labour hour basis. The cost to the customer is full cost plus 50 Theodore Kennels is prepared to pay a maximum fee of $487 per month. Required: Calculate the full cost and the amount to be charged to Theodore Kennels. Should Doggie Veterinary Practice take on the contract? Firstly, the overhead recovery rate can be found by this fomula: Total monthly overheads Total direct labour hours per month