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I need help on the following question. Can someone help me pls.
Annie is to set up a small hairdressing business at home. She anticipates working a 35-hr week and taking 4 weeks’ holiday per year. Her expenses for materials & overheads are expected to be $ 3000 per year, and she has set herself a target profit of $ 18000 for the first year.
Assuming that only 90% of her working time will be chargeable to clients, what price should she charge for a “colour & cut” which would take 3 hrs?
A. $ 13.89
B. $ 35.71
C. $ 37.50
D. $ 41.67The correct answer to this question given was D with its workings. But I’m having difficulty solving the whole question. Can someone be kind enough to explain in detail of this question.
Thanks in advance.
1 year =52 week
working week =52-4=48 (4 week holiday’)
working hour=48*35=1680 (1 week=35h)
chargeable working hour=1680*90% =1512
total cost =3000+18000=21000
cost per hour=21000/1512=13.88
cost for job =13.89*3 = 41.67 ( number of hour* cost per hour)Please help with this question as well.
A company operates a standard marginal costing system. Last month its actual fixed overhead expenditure was 10% above budget resulting in a fixed overhead expenditure variance of $ 36000.
What was the actual expenditure on fixed overheads last month?
A. $ 324,000
B. $ 360,000
C. $ 396,000
D. $ 400,000Correct answer is C. Pls Help me with the calculation.
10%x = 36,000
x = 36,000/10%
x = 360,000
This is 100%, meaning the budgeted expenditure. The Actual Expenditure is 10% above budget, i.e 110% of budget. So,
Actual Expenditure = 360,000*110% = 396,000Correct Answer: C) 396,000
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