LMN Ltd has the following data relating to its assembly plant for the year to 31 March Year 7: Material costs Direct labour costs Assembly plant indirect costs £ 1,000,000 500,000 200,000 In addition, the stores department has total costs of £60,000 and spends 50 per cent of its time servicing the assembly plant. In Year 7, there were 100,000 labour hours worked and 50,000 machine hours run in the assembly plant. What was the overhead cost per direct labour hour? A) 4.60 B) 2.00 C) 2.30 D) 4.00

LMN Ltd has the following data relating to its assembly plant for the year to 31 March Year 7: Material costs Direct labour costs Assembly plant indirect costs £ 1,000,000 500,000 200,000 In addition, the stores department has total costs of £60,000 and spends 50 per cent of its time servicing the assembly plant. In Year 7, there were 100,000 labour hours worked and 50,000 machine hours run in the assembly plant. What was the overhead cost per direct labour hour? A) 4.60 B) 2.00 C) 2.30 D) 4.00

Name: LMN Ltd has the following data relating to its assembly plant for the
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Description: LMN Ltd has the following data relating to its assembly plant for the year to 31 March Year 7:Material costsDirect labour costsAssembly plant indirect costs£1,000,000500,000200,000In addition, the stores department has total costs of £60,000 and spe

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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