Hershall and Briggs Limited incurred the following labour costs in respect of its production process in the year ended 31 March 20X5: The production process is split into two cost centres: machining and finishing.One third of the supervisory labour time is spent in the finishing department with the balance spent in machining.The finishing process is messy and 60% of the cleaners' hours are spent in this department.£101 000 of direct labour costs are incurred in the machining department and the remainder in the finishing department.
What is the total amount of indirect labour cost allocated to the machining cost centre?

Question

Hershall and Briggs Limited incurred the following labour costs in respect of its production process in the year ended 31 March 20X5:  The production process is split into two cost centres: machining and finishing.One third of the supervisory labour time is spent in the finishing department with the balance spent in machining.The finishing process is messy and 60% of the cleaners' hours are spent in this department.£101 000 of direct labour costs are incurred in the machining department and the remainder in the finishing department.
What is the total amount of indirect labour cost allocated to the machining cost centre?

Quizplus · Accepted Answer

The Answer is B

Hershall and Briggs Limited Incurred the Following Labour Costs in Respect