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How to calculate selling price using the ff info? Cost of bus Engine R 2000 Other Dm R500 DI rent labour 4hrs @500ph R2000 Variable
How to calculate selling price using the ff info?
Cost of bus
Engine R 2000
Other Dm R500
DI rent labour 4hrs @500ph R2000
Variable overheads (2hrs@R150 ph)R3p0
Budgeted monthly overhead R300 000
The absorption rate for fixed production overheads will be based on the direct labour hours,annual Budgeted direct labour hours,on a normal year are 18000 for the production of buses.company make a profit of 25% on full production cost from the sale of each bus.
Caccurate the selling price of the bus using full cost plus pricing approach?
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