Practice Question 1: Den Ltd provides a repair and maintenance service for motor vehicles. Monthly overhead costs are 25,000. Each month 1,000 direct labour hours are worked and charged to cost units. Labour is paid 12 per hour. The company charges overheads to jobs on a direct labour hour basis. Direct material is 5 per kg. New job includes the following direct costs: Direct material - 50 kg Direct Labour - 6 hours Calculate the full (absorption) cost for the new job