Accounting 9706 · AS & A Level · Traditional costing methods

Traditional costing methods — practice question

A company has been requested to quote a price for one particular job. The estimated costs are: direct materials = $2000 direct labour = $3300 Overheads are applied at $50\%$ of labour cost. Profit amounts to $20\%$ of the total job cost. What is the full quotation total for the job?

  • A$5300
  • B$6360
  • C$6950
  • D$8340

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