Question
Metal Fab is a business that specialises in making metal fabrications for their customers. Each fabrication is different, so Metal Fab uses a job costing
Metal Fab is a business that specialises in making metal fabrications for their customers. Each fabrication is different, so Metal Fab uses a job costing system.
Metal Fab uses a predetermined overhead recovery rate to apply overheads (indirect costs) to jobs.
Metal Fab uses direct labour hours as the overhead cost driver.
The following annual figures are budgeted for Metal Fab:
Overheads (indirect costs) | $70000 |
Direct labour costs | $120000 |
Direct labour hours | 5000 |
A customer asks Metal Fab to quote a job for them (to fabricate sheet metal to their specifications).
Metal Fab estimates the following for the quote:
Direct materials used to manufacture the sheet metal | $2400 |
Direct labour hours used to manufacture the sheet metal | 15 |
The overhead recovery rate for Metal Fab is $ ______ (enter your answer as a whole number with no decimal points, commas or symbols)
The full cost of the job being quoted is $ ______ (enter your answer as a whole number with no decimal points, commas or symbols)
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