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A business operates a job costing system and has the aim of making a net profit of 30% of sales
The costs estimates for one particular job are as follows
Direct material 80 kg at $5 per kg
Direct material 40 hours at $6 per hour
The total overheads are budgeted at $120000 and are absorbed on the basis of direct labour hours the budgeted labour hours are 50000
Ans for this question is 1051 what if the question says the aim of the business is to make a net profit of 30% on costs what would be the ans
You would calculate the cost in the same way, and then multiply the cost by 30% to get the profit!!