u have been asked to prepare a quotation for a special job which is to produce $2,000$ units of the company's product, from the following information, assuming

the company uses a $20\%$ mark up on total cost:

Department A Department B

Number of Direct Employees $610$

Area m$^21,0005,000$

Direct Labour hours $9,00016,000$

Machine hours $5,00040,000$

Cost of Equipment $100,000150,000$

Ratio of Power usage $19$

Direct Materials $10,00080,000$

Direct Labour $60,00080,000$

Department A calculates overhead absorption rates based upon labour hours.

Department B calculates overhead absorption rates based upon machine hours.

Overhead Analysis Statement

Basis Total Department A Department B

Indirect Materials Allocated $1,0001,000$

Indirect Labour Allocated $1,0004,000$

Rent and Rates Area m$^215,000$

Manager's Salary Number of direct Employees $50,000$

Power Ratio of Power Usage $20,000$

Equipment Depreciation Cost of Equipment $25,000$

Building Insurance Area m$^26,000$

Department A Department B

Direct Materials $500\mathrm{.}15$

Direct Labour $($ hours$)5060$

Machine hours $10200$

Required$-$ Identification of Overhead

Rent and rates for department A $=$

Managers salary for department B $=$

Power for department A$=$

Equipment depreciation department B$=$

Building Insurance for department A $=$

Required $-$ identify the overhead absorption rates for $($answers to $2$ decimal place$)$:

Department A$=$

Department B $=$

Required $-$ identify the hourly rate of pay$-$ for $($answers to $2$ decimal places$)$:

Department A$=$

Department B $=$

Calculate the total cost of direct materials for the special job $($answer to $0$ decimal places$)$:

Calculate the total cost of direct materials for the special job $($answer to $0$ decimal places$)$:

Calculate the total cost of direct labour for the special job $($answer to $2$ decimal places$)$:

Calculate the total cost of overheads for the special job $($answer to $2$ decimal places$)$:

Calculate the total cost of the special job $($answer to $0$ decimal places$)$:

Calculate the price at which the job should be quoted $($answer to $2$ decimal places$)$: