Suppose that you own a freight forwarder company. One of your customers ZMR A.. called you on January 2022 and asked for the freight offer for the transportation of five TEU (your cost object) products from location X to location Y. You are supposed to give a reasonable freight offer to your customer. Your profit margin is 20 %. First find the cost, then add 20 % profit margin to find the customer price. Use job costing and normal costing.

a) Choose Location X and Y, explain your route and transportation modes. Explain whether the transportation is door to door or not. You can use one, two or three modes of transportation to carry out this transaction.

b) Identify and LIST the direct costs of the job. Calculate the total direct costs of the job.

c) Budget and LIST the indirect costs of your company for all jobs in 2022. Calculate the total indirect costs of your company for 2022.