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PA 900 10 30 Question 6:XYZ XYZ Co. has set the following standard for the next year: Departments Department w Direct labour hours available per period 6000 6000 Standard wage rate per hour 20 Expected learning curve 80% Standard variable overheads per hour 20 Standard fixed overheads per hour Recovery Rall) Direct labour hours required for first unit in lot of 100 units 18 The direct materials are introduced in Department S. The company is able to negotiate the following prices for purchase of direct materials during the year. Level of Output Price of direct materials (Units) 360 100 50 340 800 per unit of output 200 Overtime, if required is paid at time and a half. The overhead rates as given above does not include overtime premium. The Company has received a special order. Special tooling costs of the order amount to ? 1,200 If this order is ior 200 units or less, it will be executed in the period which has a workload of 3840 direct labour hours in Department Sand 2100 direct labour hours in Department W. Required 1. If the company decided to get the work executed entirely within the d to get the work executed entirely with in the company, what price, on cost plus basis, should be quoted for the order, if it consists of 100 units, 200 units 2. Assuming that the initial order placed by the customer is for 200 units. What lowest price should be quoted for a repeat Order of 600 units? Assume that this order will be executed When there are no capacity constraints. Inis nu examining a three-year contract to