The following data applies to the budget for a job.
direct materials $4800
direct labour $2200
machine hours 240
Direct labour is employed at an hourly rate of $11. Production overheads are charged at $25 per direct labour hour and an amount for selling and distribution overhead is calculated at 20% of factory cost. What is the total cost of the job?

Q: What topic does this question test?

This question tests Job, Batch and Service Costing in A-Level Accounting (syllabus code 9706). It is worth 1 mark.

Q: Which exam paper is this question from?

This question appeared in the Cambridge A-Level Accounting Feb/Mar 2023 examination, Paper 1 Variant 2 (9706_m23_qp_12.pdf).

Question

The following data applies to the budget for a job. 
direct materials $4800
direct labour $2200
machine hours 240
Direct labour is employed at an hourly rate of $11. Production overheads are charged at $25 per direct labour hour and an amount for selling and distribution overhead is calculated at 20% of factory cost. What is the total cost of the job?

Oracle Prep · Accepted Answer

The correct answer is C: $14400.

✓ Correct Answer

📋 Examiner Report & Trap Analysis

🎯 Mark Scheme Breakdown

Unlock the Examiner's Analysis

About This A-Level Accounting Question

Topic

Source

Practice on Oracle Prep

Related Accounting Questions