Question
You are a recent employee at Garland Manufacturing and your supervisor asked you to prepare a quotation for an upcoming project. The following are the
You are a recent employee at Garland Manufacturing and your supervisor asked you to prepare a quotation for an upcoming project. The following are the estimated costs for the project. The Job is recorded as #101. 60 units of direct material each costing $2 400 will be required for the job. Four men will be required to work for eight weeks at 40 hours per week. The men are to be paid $500 per hour. The company plans to hire a special machine for 48 hours at $4 200 per hour. A consultant will be hired for 30 hours at a rate of $2 500 per hour; this is to be treated as direct labour hours. The company will recover overhead expenses on the basis of direct labour hours at a rate of $650 per hour. General and administrations costs will be 20% of total production costs. Profit is calculated at 25% markup which is to be added to the cost computed for the job. Required: A. Calculate the total cost for Job #101 showing the quoted selling price.
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