Metato Ltd is asked to prepare a quotation to supply 500 identical parts for an engineering company. The company bases its quotation on the following estimated data.

In order to complete the job, Metalco Ltd would have to hire a specialist drill for the minimum hire period of five days at a total cost of $250. The drill would only be required for one day on this job and would not be used for any other jobs that Metalco Ltd is working on. 

Required

a. Calculate the total costs to complete the job. 

b. Calculate the cost per part. 

c. Calculate the final price that Metalco should quote the customer to complete the job.

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Direct materials $3 380 Direct labour/machine hours Machining department Finishing department Assembly department 320 machine hours 125 labour hours 500 labour hours Direct labour rates Machining department Finishing department Assembly department $6 per hour $6 per hour $5 per hour Overhead recovery rates Machining department Finishing department Assembly department $5 per machine hour $10 per labour hour $2 per labour hour Profit margin on total quotation 25%