Question

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

Answer 1

Answer:

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