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The Dream Company makes bespoke large garden sheds. It recovers overheads using direct labour hours. Below are shown budgeted financial and operational matters for next
The Dream Company makes bespoke large garden sheds. It recovers overheads using direct labour hours. Below are shown budgeted financial and operational matters for next year. Annual figures Direct materials cost in total. 150,000 Direct labour cost in total. 320,000 Direct labour time in hours. hours 32,000 Indirect labour wages. 50,000 Equipment depreciation. 16,000 Rent. 14,000 Heating, lighting and power. 10,000 Indirect materials. 4,000 Insurance. 2,000 All direct labour is paid at same hourly rate. The company has been asked to quote for a particular log cabin. The direct materials will use 46 lengths of wood. Each length of wood is 1 metre in length. Wood costs 20 for each metre. Direct labour time will be 50 hours. Required Calculate the reported full cost of the log cabin. In so doing enter the specified cost figures further below. If you believe a specific entry should be zero enter the figure 0. Do not use currency symbols. Do not use commas to denote 'thousands'. (Thus one thousand pounds is 1000) Round any entries to two decimal places. Round up or down as appropriate. Thus 2.982 is rounded to 2.98 and 2.987 is rounded
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