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Task 2 . Assume your chosen company is pricing its jobs by adding 20% to the total cost of the job it is undertaking. The
Task 2. Assume your chosen company is pricing its jobs by adding 20% to the total cost of the job it is undertaking. The prime cost (Direct Material, Direct Labour and Direct expenses) of a job was RO 6,840 and it had used 156 direct labour hours. The fixed production overheads are absorbed on the basis of direct labour hours. The budgeted overhead absorption rate was based upon a budgeted fixed overhead of RO 300,000 and total budgeted direct labour hours of 60,000. Determine the selling price of the job.
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