Tutorial 3 Flashcards

1
Q

How to deduce the logical cost of a job given the overheads of a firm?

A
  1. Calculate how much direct labour is required.
  2. Calculate the sum of all indirect costs.
  3. Divide the sum of all indirect costs between the total labour hours in the business.
  4. Times the indirect cost per unit of direct labour by the number of hours needed to produce the unit.
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