• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA Books

Books for Sept'23 ACCA exams : Get your discount code >>

New! Ask ACCA AI Tutor

Post your questions
& get instant answers

Job and Batch costing

Forums › FIA Forums › MA2 Managing Costs and Finance Forums › Job and Batch costing

  • This topic has 1 reply, 2 voices, and was last updated 2 months ago by mrjonbain.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • July 26, 2023 at 5:24 pm #688961
    Chronsicc
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    Jobbz Co has been asked to quote for a job. The following cost estimates have been made:
    Cost $
    Direct materials 700
    Direct labour 1,600
    Other expenses 680
    Production overhead 460

    1. If Jobbz Co uses a profit margin of 20%, what is the selling price $ for the job?

    im getting 4128 by doing 3440×120%.. since 100% is 3440 and 688 is 20% profit.

    The question is taken from acca studyhub and the answer given is

    The correct answer is 4,300.

    Total cost of the job = $700 + $1,600 + $680 + $460 = $3,440

    Margin: remember the selling price = 100%

    Selling price (100%) = $3,440 / 0.8 = $4,300

    July 27, 2023 at 6:37 am #688987
    mrjonbain
    Moderator
    • Topics: 3
    • Replies: 1851
    • ☆☆☆☆☆

    Welcome to the Opentuition forums. Your initial answer was wrong because a margin of twenty percent is being asked for, not a markup of twenty percent. For example, if a good cost £80 to make and a twenty percent markup was required, the calculation would be 80 x 1.2 = £96. If a twenty percent margin were required on same good it would be calculated as above £80 / 0.8 =£100. This is equivalent to a twenty five percent markup. Hope this helps.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA Qualification syllabus changes for 2023/24

Need verifiable CPD for 2023? 21 units of FREE CPD on offer from ACCA

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

PQ Magazine

Latest comments

  • nghja2012 on Inventory – Examples – ACCA Financial Reporting (FR)
  • kelems on Basic group structures – SPLOCI introduction and example – ACCA (SBR) lectures
  • jcosgrove16 on Double Entry Bookkeeping (part a) – ACCA Financial Accounting (FA) lectures
  • ayeodele on The management of receivables – Change of policy – ACCA Financial Management (FM)
  • Akhil004 on Discounted cash flow techniques (part 2) – ACCA (AFM) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in