QUESTION $1$

Contaxx Manufacturing is a company that specializes in producing customized

furniture. The company received an order from a client for $50$ custom$-$made office

desks. The cost data for this job includes the following:

Direct materials: R$15,000$

Direct labour: R$12,000(240$ hours at R$50$ per hour$)$

Manufacturing overhead: R$18,000($applied based on direct labour hours$)$

The company expects a spoilage rate of $5\%$ during production.

a$)$ Calculate the total cost of the job.

b$)$ Determine the cost per desk. $(5)$

c$)$ If the company wants to maintain a $20\%$ profit margin, what should the selling price

per desk be$?(15)$

d$)$ Discuss the impact of spoilage on job costing and how it should be accounted for.

$(10)$