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Mindel Ltd offers a service to those wishing to customise their luxury cars. The business has overheads of 120,000 each month. Each month 6,000 direct
Mindel Ltd offers a service to those wishing to customise their luxury cars. The business has overheads of 120,000 each month. Each month 6,000 direct labour hours are worked and charged to cost units (jobs carried out by the business). A particular job undertaken by the business used materials costing 2,830. Direct labour worked on the job was 85 hours and the wage rate is 24 an hour. Mindel Ltd charges overheads to jobs on a direct labour hour basis and adds a mark-up of 120% to the full cost for pricing purposes. 1. What is the full (absorption) cost of the customisation job? 2. What price will be charged to the customer for the job? Calculations to nearest pence. The full (absorption) cost of the customisation job is The price will be charged to the customer for the job is
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