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John an engineer operates a job costing system. Production overhead is absorbed at the rate of 11 per labour hour. To allow for non-production overhead
- John an engineer operates a job costing system. Production overhead is absorbed at the rate of 11 per labour hour. To allow for non-production overhead costs and profit, a mark-up of 40% of prime cost is added to the production cost when preparing price estimates.
The estimated requirements of job number 001 are as follows:
Direct materials = 32,000
Direct labour = 21,000
Labour hours 110.
The estimated price notified to the customer for job number 001 will be?
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