Question 3

In a job costing system, Job No L2569 has incurred the following prime costs:

Direct materials	15 cwt at RM2.40 per cwt
Direct wages	Cost centre A 18 hours at RM0.35 per hour
	Cost centre B 32 hours at RM0.30 per hour

Budget overhead for the year, based on normal capacity, was:

Variable	Cost centre A RM5,850 for 9,000 direct labour hours
	Cost centre B RM8,000 for 19,000 direct labour hours
Fixed	Total budgeted direct labour hours for whole factory - 22,000 hours and total overhead is RM10,000

You are required to:

a) Calculate the cost of job no L2569

b) Estimate the per cent profit on cost if the price quoted to the customer was RM145.70