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A factory has three production departments- Preparation, Assembly and Finishing together with two service departments- Maintenance and Material handling. The budgeted information for the year

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A factory has three production departments- Preparation, Assembly and Finishing together with two service departments- Maintenance and Material handling. The budgeted information for the year 2010 is as follows: Department Overhead Cost Allocated/Apportion Capacity Utilization Preparation Assembly Finishing Maintenance Material Handling S 360 000 192 000 168 000 24 000 16 000 8 000 machine hours 24 000 man hours 24 000 man hours The service department costs should be reapportioned to the production department as follows: Maintenance Material Handling Preparatiorn 60% 40% Assembly 10% 30% Finishing 30% 30% The wages relating to the preparation department are overhead costs. In the Assembly and Finishing department the wage rate is $2.10 per hour. The administration and selling overheads are to be absorbed in the job cost at 20% of production cost. Distribution should be added to cach job according to quotes from outside carriage companies. The company wishes to quote for job #482. The following information is available for job i482: $410 Preparation Assembly Finishing $166 Direct Material Time Required 30 machine hours 40 man hours 50 man hours Special Design Distribution Quote From Haulage Company $150 REQUIRED: Calculate the total cost and quotation price for job #482 where a profit margin of 25% on selling price is applied

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