Multiple Choice
Priddy Products Limited manufactures an industrial grade floor polish which it sells in 10kg tubs. Each tub sells for £32.50. Direct materials per tub cost £4.40 and direct labour costs £3.50. Factory production overhead is recovered on the basis of direct labour hours. Each tub of product requires 20 minutes of direct labour input, and the recovery rate per labour hour is £31.74. What is the contribution per tub of polish?
A) £ 25.67
B) £ 24.60
C) £18.60
D) £34.00
Correct Answer:
Verified
Correct Answer:
Verified
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