Ramsey ltd offers on-site, household appliance repairs to householders. Each month, there are2300.00direct labour hours worked on repairs to washing machines, dishwashers and freezers. During the most recent month, the business incurred the following expenses: £Direct materials 8,000Direct labour 30,000Overheads 20,000 During the month, a dishwasher was repaired for a customer. Replacement parts cost£135and a technician took5hours to carry out the repair work. The business uses the direct labour hour basis for overhead recovery and charges an additional40%to the full cost of a job as a profit mark-up. What should be the price charged to the customer for repairs to the dishwasher? (All calculations to nearest pence.) Question content area bottomPart 1The price charged to the customer for repairs to the dishwasher is£enter your response here .

Price Charged- Price charged suggests that the value a client is charged for associate item. For…

Answered: Ramsey ltd offers on-site, household…

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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Question

Ramsey ltd offers on-site, household appliance repairs to householders. Each month, there are

2300.00

direct labour hours worked on repairs to washing machines, dishwashers and freezers. During the most recent month, the business incurred the following expenses:

		£
Direct materials		8,000
Direct labour		30,000
Overheads		20,000

During the month, a dishwasher was repaired for a customer. Replacement parts cost

£135

and a technician took

hours to carry out the repair work. The business uses the direct labour hour basis for overhead recovery and charges an additional

40%

to the full cost of a job as a profit mark-up.

What should be the price charged to the customer for repairs to the dishwasher? (All calculations to nearest pence.)

Question content area bottom

Part 1

The price charged to the customer for repairs to the dishwasher is

£enter your response here

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