You are the cost accountant of an engineering concern which has

three departments - preparation, machining and assembly. The

budgeted direct labour hours for the workshops are 8,000, 12,000 and

10,000 respectively. Fixed factory overheads are budgeted at $12,000

for the year and variable factory overheads are as follows:

Preparation$4000

Machine shop $ 30000

Assembly$20000

The agreed hourly wage rates are:

Preparation$3.60

Machine shop $4.20

Assembly$1.50

The company wishes to quote for job #255:

Raw materials$4160

Direct labour: Preparation100hours

Machine shop500hours

Assembly400hours

Painting by outside contractor$800

Distribution quote from haulage company $280

a) Administration and selling overheads are to be absorbed in job

costs at 5% of the total of all other costs.

b) Fixed overheads are absorbed on the basis of plant-wide average.

Required:

Calculate the total cost and quotation price of job #255 where a mark-up of 25% on cost is applied