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DF Limited is a manufacturing company that carries out jobs to customers requirements in three production departments. The following data is available for Jobs A,

DF Limited is a manufacturing company that carries out jobs to customers requirements in three production departments. The following data is available for Jobs A, B and C.

A B C

Bought in components248 76 -

Direct material from stores 312 32 96

Direct labour hours:

Machining12 18 15

Assembling 6 9 4

Finishing and Spraying 3 2 2

Hourly wage rates:

Machining 12.00

Assembling 8.00

Finishing and Spraying6.00

Production overhead absorption rates per direct labour hour:

Machining26.00

Assembling 21.00

Finishing and Spraying 25

Your cost estimates should include allowances for:

(a) 20% of total production cost for administration overhead

(b) Profit of 12.5% on selling price.

Required:

Calculate the price that should be charged for Jobs A, B and C

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