Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A company has been given an order to provide $3000$ pairs of safety glasses. The production costs are listed below. raw materials $975$ packaging for $50$ pairs $4.20$ direct labour at $\$8.00$ per direct labour hour $800$ order setting up costs $100$ overhead absorption rate per direct labour hour $6.25$ What does the manufacturing cost of this order amount to?

  • A$2552
  • B$2652
  • C$2710
  • D$2752

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