Master Builders Company carries out small building jobs for domestic customers. A customer has asked the...

  

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Master Builders Company carries out small building jobs for domestic customers. A customer has asked the company to quote a price for building an extension on the back of the house. The company's cost accountant has come up with the following estimated cost: Direct material $25000 $40000 Direct labour Direct expenses $5000 Production overhead Other overheads Profit margin 100% of labour cost 20% of total production costs 25% of total costs Required: (a) Calculate the quotation price for the job (b) Give one (1) characteristic/feature of job costing Master Builders Company carries out small building jobs for domestic customers. A customer has asked the company to quote a price for building an extension on the back of the house. The company's cost accountant has come up with the following estimated cost: Direct material $25000 $40000 Direct labour Direct expenses $5000 Production overhead Other overheads Profit margin 100% of labour cost 20% of total production costs 25% of total costs Required: (a) Calculate the quotation price for the job (b) Give one (1) characteristic/feature of job costing

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Answer All Amount In Dollars a Calculation of the Quotation Price For the JOB Particulars Amou... View the full answer