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  3. johnson ltd makes only one product talcum powder.

Johnson Ltd makes only one product talcum powder. A total overhead of 25,000 were incurred...

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Accounting

Johnson Ltd makes only one product talcum powder. A total overhead of 25,000 were incurred last year. During the same period, a total of 5,200 direct labour hours were worked.

The following information relates to direct cost of producing one talcum powder:

direct materials costing 1.20

direct labour time of 15 minutes at an hourly labour rate of 9.

The indirect costs or overheads are charged on a direct labour hour basis.

Required: What is the full cost (direct cost + indirect cost) of producing one talcum powder?

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