What is the cost and price of the following job? A start-up company wants to price this job to cover costs and have a reasonable profit.

Data:

The company purchased 1,000 parts at $25 each Job #1 requisitioned 20 parts for conversion in a job 10 hours of labour are to be used in the job

The average wage per hour is $50 The company expects to have $25,000 of factory overhead and total labour hours of 500 in the year. Corporate overhead including engineering applied to the job will be $500 The profit margin is 20% The price to the customer is total cost plus 20% of that cost It is a fixed price contract The production process has just started and will need constant process improvements

Question: What is the cost of the job? What is the price of the job? What is one risk to monitor?

Question C - Mandatory Question on Job Order Costing (10 marks) What is the cost and price of the following job? A start-up company wants to price this job to cover costs and have a reasonable profit. Data: . The company purchased 1,000 parts at $25 each Job #1 requisitioned 20 parts for conversion in a job 10 hours of labour are to be used in the job The average wage per hour is $50 The company expects to have $25,000 of factory overhead and total labour hours of 500 in the year. Corporate overhead including engineering applied to the job will be $500 The profit margin is 20% The price to the customer is "total cost plus 20% of that cost It is a fixed price contract The production process has just started and will need constant process improvements . . . Question: 1. What is the cost of the job? 2. What is the price of the job? 3. What is one risk to monitor