part 1 continue (14 marks) 3. A factory has two production departments- Machinin

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part 1 continue

(14 marks) 3. A factory has two production departments- Machining and Finishing. The wage rate for the Machining Department is $25 per hr while in the Finishing department the rate is Sas per hr. The administration and selling.overheads are to be absorhed in the job.cost at 20% of the production cost. Distribution should be added to each job according to quotes from outside carriage companies The company wishes to quote for job #400. The following information is available for the job. Overhead absorption rate: Machining Finishing $60.00 $30.00 Direct Material cost Machining Finishing $14,000 a 5 $3,000 Time required Machining Finishing 30 machine hrs 50 man hrs Special Design Distribution $5 000 $10 000

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Machining Finishing Total Direct Material 14000 3000 17000 Direct Labor 750 750 1500 25*30 Hour 15*50 Hour Overhead 1800 1500 3300 60*30 Hour 30*50 Hour Total Production Cost 16550 5250 21800 Selling and Admin 20% 3310 1050 4360 Distribution 10000 Special Design 5000 Total Cost 41160 Profit Margin 25% 10290 Quot Price 51450

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