Reference no: EM132927311

Question - A builder has produced a quote for some alterations. The price is made up as follows:

Direct materials (100 kg @ $4 per kg) 400

Direct labour (5 hours @ $10 per hour) 50

(15 hours @ $5 per hour) 75

Hire machine (1 day @ $100 per hour) 100

Overheads (20 hours @ $8 per hour) 160

Total costs 785

Profit @ 20% of cost 0.2 x $785 157

Price quoted $942

Actual costs for the job were as follows:

Direct materials (120 kg @ $4 per kg)

Direct labour (3 hours @ $10 per hour)

(20 hours @ $5 per hour)

Hire a machine (2 days @ $100 per hour)

Required - What the actual profit/(loss) made in the job?

A. $52 loss

B. $28 loss

C. $28profit

D. $52 profit