Boat Brothers has been asked to refit a boat for a customer.Skilled labour costing £16 per hour will be required for the refit. The workers will have to be taken off the production of kayak for resale for a total of 480hours. The kayak are sold for £400 each and take 24 hours of skilled labour. The material cost of each kayak is 120.What is the relevant cost when assessing the viability of the refit contract?OA. £5,600OB. £8,000OC. £3,840OD. £1,760Next ←The following data relates to 20 tonnes of chemical X105 that is currently held by the business and can be used to fulfil a contract.Purchase costReplacement costNet realisable value£2,8003,2003,000The material is no longer used for production and so, unless it is used in this contract, it will be converted into 15 tonnes of chemical X106 at a cost of£400. This chemical is widely used in the production process and such a quantity has a cost of £3,500.What is the relevant cost of chemical X105 when considering the viability of the contract?OA. £2,800OB. £3,100O C. £3,200OD. £3,000Next

1.Hours required for refit = 480 hours

others has been asked to refit a boat for a customer. abour costing £16 per hour will be required for the refit. The workers will have to be taken off the production of kayak for resale for a total of 480 The kayak are sold for £400 each and take 24 hours of skilled labour. The material cost of each kayak is 120. the relevant cost when assessing the viability of the refit contract? £5,600 £8,000 £3,840 ...

others has been asked to refit a boat for a customer. abour costing £16 per hour will be required for the refit. The workers will have to be taken off the production of kayak for resale for a total of 480 The kayak are sold for £400 each and take 24 hours of skilled labour. The material cost of each kayak is 120. the relevant cost when assessing the viability of the refit contract? £5,600 £8,000 £3,840 ...

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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