Total production overheads for March for a company were £240,000. These costs are absorbed into products based on budgeted direct labour hours and during March 40,000 direct labour hours were budgeted to be incurred. During March product A was manufactu and it incurred the following, direct material costs of £330 and direct labour costs of £480. Labour is paid at £16/hour. The profit for product A is to be 10% of the selling price. What the profit on product A?
Total production overheads for March for a company were £240,000. These costs are absorbed into products based on budgeted direct labour hours and during March 40,000 direct labour hours were budgeted to be incurred. During March product A was manufactu and it incurred the following, direct material costs of £330 and direct labour costs of £480. Labour is paid at £16/hour. The profit for product A is to be 10% of the selling price. What the profit on product A?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:Total production overheads for March for a company were £240,000. These costs are
absorbed into products based on budgeted direct labour hours and during March 40,000
direct labour hours were budgeted to be incurred. During March product A was manufactured
and it incurred the following, direct material costs of £330 and direct labour costs of £480.
Labour is paid at £16/hour. The profit for product A is to be 10% of the selling price. What is
the profit on product A ?
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