Epsilon Manufacturing Company uses a predetermined manufacturing overhead rate based on a percentage of direct labor cost. At the beginning of 2018, they estimated total manufacturing overhead costs at $1,015,000, and they estimated total direct labor costs at $1,400,000.

The administration and selling overheads are to be absorbed in each job cost at 15% of production cost. Distribution cost should be added to each job according to quotes from outside carriage companies.

The company wishes to quote for job # W500. Data for the job are as follows:

Direct materials cost $169,450

Direct labour cost $230,000

Direct labour hours 400 hours

Special Design Cost $12,300

Distribution quote from haulage company $17,930

Units of product produced 250 crates

a) Compute Epsilon Manufacturing Company predetermined manufacturing overhead rate for 2018.

b) How much manufacturing overhead was allocated to Job #W500?

c) Calculate the total cost & quotation price of Job #W500, given that a margin of 25% is applied.

d) How much was the production cost per unit (cost per crate) of finished product?