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A company gives a quotation for a job which requires 85 kg of materials @ £9.30 per kg, 16 direct labour hours @ £35 per hour and overheads recovered on the basis of direct labour hours, at £15 per hour. A profit mark-up of 100% is added. If the actual direct labour hours worked on the job were 20, what would the profit have been, assuming that the quoted price could not be renegotiated? OA. £3,181.00 B. £1,390.50 C. £1,790.50 OD. £1,590.50 GALL

A company gives a quotation for a job which requires 85 kg of materials @ £9.30 per kg, 16 direct labour hours @ £35 per hour and overheads recovered on the basis of direct labour hours, at £15 per hour. A profit mark-up of 100% is added. If the actual direct labour hours worked on the job were 20, what would the profit have been, assuming that the quoted price could not be renegotiated? OA. £3,181.00 B. £1,390.50 C. £1,790.50 OD. £1,590.50 GALL

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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K A company gives a quotation for a job which requires 85 kg of materials @ £9.30 per kg, 16 direct labour hours @ £35 per hour and overheads recovered on the basis of direct labour hours, at £15 per hour. A profit mark-up of 100% is added. If the actual direct labour hours worked on the job were 20, what would the profit have been, assuming that the quoted price could not be renegotiated? OA. £3,181.00 B. £1,390.50 C. £1,790.50 OD. £1,590.50
Transcribed Image Text:K A company gives a quotation for a job which requires 85 kg of materials @ £9.30 per kg, 16 direct labour hours @ £35 per hour and overheads recovered on the basis of direct labour hours, at £15 per hour. A profit mark-up of 100% is added. If the actual direct labour hours worked on the job were 20, what would the profit have been, assuming that the quoted price could not be renegotiated? OA. £3,181.00 B. £1,390.50 C. £1,790.50 OD. £1,590.50
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