Practice questions:

A company has established the following annual budgets:

A job has been accepted which has the following direct costs:

Direct materials          18 kg @ £5.10 per kg

Direct wages:

Dept 1                      18 hours @ £3.50 per hour

Dept 2                      32 hours @ £3.00 per hour

Calculate the total cost of the job and the profit as a percentage of costs if the selling price is £500.