Question

1. An engineering firm operates a job costing system. Production overhead is absorbed at the rate of $8.50 per machine hour. In order to allow for non-production overhead costs and profit, a mark-up of 60% of prime cost is added to the production cost when preparing price estimates. The estimated requirements of job number 808 are as follows:
• Direct materials used $10,650
• Direct manufacturing labour $3,260


Required • Machine hours 140
A. How much is the estimated price notified to the customer for job number 808?
( 2 points)
B. What is the amount of conversion cost applied to Job number 808? (2 points

Answer 1

Explanation:

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