Hodson Ltd is a one product firm with material cost per unit of £55.00 and labour cost per unit of £5.50. Labour cost is incurred at the rate of £11.00 per hour, and overheads are absorbed at the rate of £37.00 per labour hour. Hodson Ltd applies mark up to its product at a standard rate of 50% on total cost. What is the expected margin for the product?
Caculation of labour hours per unitI hope this solves your doubt.Feel free to comment if you still ha ... See the full answer