Answer to Question #194757 in Economics for qianhe

Question

The following data are extracted from the current year’s budget of J.J. Trading.

 

Direct labour hours Hourly wage rate Production overhead

Machine shop 20,000 RM3.25 RM70,000

Assembly shop 18,000 RM3.10 RM45,000

Finishing shop 10,000 RM3.00 RM20,000

A customer has requested a quotation for supplying a special piece of equipment and the estimator has worked out the following details:

Components to be purchased RM216

Materials from store RM270

Direct labour times:

    Machining 80 hours

    Assembling 40 hours

   Finishing 30 hours

Delivery cost to customer RM60

Administration and marketing costs are covered by adding 10% to cost of manufacture. 12 ½% is added to the total (delivered) cost for profit.

You are required to :

(a) Calculate the cost for supplying this special piece of equipment.

(b) Calculate the selling price quoted to the customer.

Answer 1

Dear qianhe, your question requires a lot of work, which neither of our experts is ready to perform for free. We advise you to convert it to a fully qualified order and we will try to help you. Please click the link below to proceed: Submit order