Question Solved1 Answer Wilshaw Ltd is a one product firm with material cost per unit of £11.00 and labour cost per unit of £22,50. Labour cost is incurred at the rate of £11.25 per hour, and overheads are absorbed at the rate of £9.00 per labour hour. Wilshaw Ltd applies mark up to its product at a standard rate of 25% on total cost. What should the selling price be set at? £64.38 £51.50 £67.18 53.75

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Transcribed Image Text: Wilshaw Ltd is a one product firm with material cost per unit of £11.00 and labour cost per unit of £22,50. Labour cost is incurred at the rate of £11.25 per hour, and overheads are absorbed at the rate of £9.00 per labour hour. Wilshaw Ltd applies mark up to its product at a standard rate of 25% on total cost. What should the selling price be set at? £64.38 £51.50 £67.18 53.75
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Transcribed Image Text: Wilshaw Ltd is a one product firm with material cost per unit of £11.00 and labour cost per unit of £22,50. Labour cost is incurred at the rate of £11.25 per hour, and overheads are absorbed at the rate of £9.00 per labour hour. Wilshaw Ltd applies mark up to its product at a standard rate of 25% on total cost. What should the selling price be set at? £64.38 £51.50 £67.18 53.75
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The correct answer is $ 64.38 Calculation Selling Price = Total cost * (1+ mark up percentage)  = (direct labour + direct material + overheads ) * (1+ 25%)  = (22.5+11.+(9*22.5/11.25))*( ... See the full answer