Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The budget for a job uses the following information: direct materials $04800$, direct labour $02200$, and machine hours $240$. Direct labour is paid at $011$ per hour. Production overheads are allocated at $025$ for each direct labour hour, and selling and distribution overhead is worked out as $20\%$ of factory cost. What is the total cost of the job?

  • A$\$8400$
  • B$\$12000$
  • C$\$14400$
  • D$\$15600$

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