A small company, PumpAlot Ltd, specialises in the refurbishment of pumps for the chemical industry. Its services include reconditioning and re-engineering pumps within its own premises. It also undertakes collection of pumps from customers and delivery on completion. PumpAlot Ltd has three main divisions. Its three divisions along with their defined function and staff numbers are as follows: Administration (3 staff) Including customer service enquiries, invoicing, purchasing, accounts and payroll. Engineering workshops and labs (5 staff) - Engineering technicians for dismantling, repair, machining/refurbishing, assembly and testing. Packaging and transport (2 staff) Packaging, collection and delivery PumpAlot have received an order for refurbishing 20 pumps for a large chemical works. The order requires input from the Engineering workshop staff as follows: 4 workshop technicians for the duration of 5 days Costing of the order is determined on the following basis Workshop staff labour at a cost of 25/hour Business overheads (including the running of the packaging and transport department, administration, factory costs machines etc.) at a cost of 120k per annum. Overhead recovery based on annual workshop labour hours (5 technicians working 5 days/week 7.5 hours/day, 45 weeks/year). Direct materials cost to meet this order is 250 to cover small items such as replacement bearings, seals and consumables 1. Determine the cost of this order [10 marks] The company adds 30% to its marginal cost prior to invoicing its customers and a further 20% for VAT. For what amount will it invoice its customer? 2. [2 marks]