Solution-What price per chair should owf quote to the

What price per chair should owf quote to the customer

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Reference no: EM132992644

The management accountant of OWF quickly collated cost data of making 300 directors' chairs (Job 725). The direct costs data are as follows:

Direct materials costs $40 000
Direct production labour costs $30 000

Problem 1: Indirect costs are allocated based on budgeted factory overhead cost allocation rate. Calculate the total cost of job 725 using normal costing.

Problem 2: Based on the total production cost of Job 725 calculated in the previous question, what is the cost per chair?

Problem 3: OWF uses 'cost-plus' policy for pricing of its products. If the OWF's mark-up is 20% then what price per chair should OWF quote to this customer? (Round the price to nearest dollar)

Reference no: EM132992644

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What price per chair should owf quote to the customer

Reference no: EM132992644

Reference no: EM132992644

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