Poodle Grooming Parlour has overheads of

11,000

per month. Each month

2,000

direct labour hours are worked and charged to specific jobs, each of which involves grooming dogs for shows. The costs and time incurred on job number

66962

were:

Direct materials ()	40.00
Direct labour (hours)	5
Wage rate ( per hour)	16.00

Overheads are charged to jobs on a direct labour hour basis. The cost to the customer is full cost plus

80%.

Required:

Calculate the full cost and the amount to be charged to the customer for job number

66962.

Question content area bottom

Part 1

Firstly, the overhead absorption rate can be found by this formula:

(Complete the necessary drop downs.)

Part 2

The values can now be inserted (Calculate the overhead absorption rate to two decimal

places.):

Overhead absorption rate

=

=

enter your response here per direct labour hour

Part 3

The full cost of job number

66962

can now be calculated (Round your answer to 2 decimal

places.):

Direct materials
Direct labour
Overheads
Full cost of the job

Part 4

Finally, the amount to be charged to the customer for job number

66962

can be calculated:

(Round your answer to 2 decimal places.)

Profit added
Amount charged to customer