The Student Room Group

Abc costing question

If a question gave this information' The company absorbs overheads as a percentage of direct labour and their standard profit mark-up is 15% of total cost.' What do we do with the 15%? Does it change anything in the question or can we calculate as normal?
(edited 2 months ago)
Original post by N12345678
If a question gave this information' The company absorbs overheads as a percentage of direct labour and their standard profit mark-up is 15% of total cost.' What do we do with the 15%? Does it change anything in the question or can we calculate as normal?

I don't understand the question.

Don't you apply the markup to each profit centre? (Part of TSR policy in that we can't give you direct answers to your question.)

What is the problem specifically?

Quick Reply