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Company A bases its estimates on the following formula: Total cost = Prime cost + 40% overhead Selling price = Total cos
Posted: Sat Feb 19, 2022 2:33 pm
by answerhappygod
- Company A Bases Its Estimates On The Following Formula Total Cost Prime Cost 40 Overhead Selling Price Total Cos 1 (33.62 KiB) Viewed 39 times
Company A bases its estimates on the following formula: Total cost = Prime cost + 40% overhead Selling price = Total cost + 25% profit Estimates for two jobs show Job X Job Y £ £ Direct materials Direct wages £5 per hour Prime cost 200 500 700 100 600 700 Calculate the selling price of each job. Is this the best way to absorb overhead?