Brown's factory has three production department- Preparation, Assembly and Finishing with two service departments-Maintenance and Material handling.The budgeted information for the year 2019 is as follows:

DepartmentOverhead cost

Capacity Utilization

Allocated/Apportioned

Preparation$45,000

2000 machine hours

Assembly$24,0006000 man hours

Finishing$21,000

Maintenance$3,000

Material Handling

$2,000

The service department cost should be reapportioned to the production department as follows:

Preparation

AssemblyFinishingMaintenance50%20%30%Material Handling

40%40%20%

The wages relating to the preparation department are overhead cost.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 at 33 1/3 % of production cost.Distribution should be added to each job according to quotes from outside carriage companies.The company wishes to quote for job #2020.The following information is available for job$2020

Direct material$7,320

Time requiredPreparation 40 machine hours

Assembly 30 man hours

Finishing50 man hours

Special design$5,200

Distribution quote from haulage company$2,000

Required:

Calculate the total cost and quotation price for job#2020 where a profit margin of 30% on selling price is applied.(Total 25 marks)