Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

The business gave the following details. budgeted overheads $20\,000$ budgeted direct labour hours $2000$ direct labour rate $20$ per hour A job used materials costing $45$ and $6$ hours of direct labour. Overheads are allocated according to the number of direct labour hours worked. What was the cost of the job before any profit was included?

  • A$105
  • B$165
  • C$180
  • D$225

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