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  3. a job requires 70 kilograms of materials, 7 direct

A job requires 70 kilograms of materials, 7 direct labour hours and overheads are allocated...

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Question

Accounting

A job requires 70 kilograms of materials, 7 direct labour hours and overheads are allocated at 2 per direct labour hour. Materials cost 5 per kilogram and direct labour costs are 12 per hour.

What is the relevant cost of this job for decision-making purposes (labour costs are not avoidable)?

  1. 350

  2. No answer is correct

  3. 448

  4. 364

  5. 434

Answer & Explanation Solved by verified expert
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