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 5 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
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 5 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
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter17: Activity Resource Usage Model And Tactical Decision Making
Section: Chapter Questions
Problem 6E: Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of...
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Question
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
|
|
|
20,000
|
During the month, a dishwasher was repaired for a customer. Replacement parts cost
£135
and a technician took
5
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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