Learning Goal: I’m working on a sales multi-part question and need an explanation and answer to help me learn.1. There are three cost centers in Roberts company: stock, production and management and marketing. The costs are as follows: Total costs are 387 580,-. Direct material costs are 180 000, – and direct labour costs 70 000,-. Indirect costs are: Stock 16 200,-, production 59 500,- and management and marketing 61 880,-. a) Define the overhead rates. b) How much is the price including VAT of the X-product, when the direct material costs are 920,- and direct labour costs 370,-? 2. Anna has a shop. She sells underwear. She has estimated the costs for the following year: – goods 600 000 – salaries 190 000 – social costs 80 000 – rent 36 000 – advertising 20 000 – depreciation 12 000 – interest 15 000 – other overheads 10 000 The profit should be 160 000 euros next year. a) How much is the overhead rate? Only costs of goods are direct costs. b) How much should the price of stockings be, if the direct costs are 10 euros?
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