Miller Limited manufactures television sets. The marketing department is setting a selling price for each television set and has received the following details of costs from the accounting department. Direct costs per television set: £80; total departmental overheads: £600,000; total number of departmental labour hours: 25,000; number of departmental labour hours taken to produce each television set: 5. The selling price for television sets has been set at total absorption cost + 25%. What is the selling price that the marketing department should set for each television set?

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The Answer of Miller Limited manufactures television sets. The marketing department is setting a selling price for each television set and has received the following details of costs from the accounting department. Direct costs per television set: £80; total departmental overheads: £600,000; total number of departmental labour hours: 25,000; number of departmental labour hours taken to produce each television set: 5. The selling price for television sets has been set at total absorption cost + 25%. What is the selling price that the marketing department should set for each television set?

Miller Limited Manufactures Television Sets