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Company X is preparing a job cost estimate that will be used to provide a quote for a potential customer. Estimated costs for the job

Company X is preparing a job cost estimate that will be used to provide a quote for a potential customer. Estimated costs for the job are to be based on the following: Materials RM2,893 Direct labour 210 hours at a basic rate of RM8 per hour. Direct production staff also receive a bonus each period. The bonus is paid on actual hours worked at a rate per hour calculated using the following formula: ([time allowed time worked] / time allowed)] x basic rate per hour The bonus to be included currently in the costing of all jobs is based on the following estimates for the period. Total time worked 3,400 labour hours Total time allowed 4,000 labour hours Production overheads Absorbed at 20% of prime cost (including labour bonus) + RM9 per direct labour hour Non-production overheads Absorbed at 25% of total production cost Quoted prices are calculated to provide Company X with a net profit margin of 20% of sales. Required: (a) Compute the total estimated production cost of the job. (10 marks) (b) Calculate the price that should be quoted for the job. (5 marks) (c) Briefly explain TWO (2) main features of job costing. (6 marks) (d) List TWO (2) industries that job costing is most prevalent. (4 marks) (Total: 25 marks)

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