Question: can you please help me with the answer for this question? 12-34 Relevant costs in investment decision making. Julie Bolts Ltd manufactures mechanical bolts for

can you please help me with the answer for this question?

can you please help me with the answer for this question? 12-34

12-34 Relevant costs in investment decision making. Julie Bolts Ltd manufactures mechanical bolts for different vehicle engines. The company has been approached to submit a quote for supply of some 3-D Bolts. The company's inventory and production records show the following: Materials: The contract requires 3,500kg of iron-cast rods material, which is a material used regularly by the company in other production. The company has 2,000kg of iron-cast rods material currently in stock which had been purchased last month for a total cost of 20,500. Since then, the price per kilogram for iron-cast rods material has increased by 10%. The contract also requires 500kg of copper-cast material. There are 250kg of copper-cast material in stock which are not required for normal production. The material originally cost a total of 3,125. If not used on this contract, the stock of copper-cast material would be sold for f20 per kg. Labor: The contract requires 800 hours of factory labor which is paid 10.00 per hour. There is a shortage of workforce and all the available factory labor is fully employed in the company in the manufacture of 3-D Bolts. The following information relates to 3-D Bolts: 1. Prepare calculations showing the total relevant costs for deciding about the contract in respect of the following cost elements: a. Iron-cast rods material and copper-cast material b. Factory labor 2. Explain how you would decide which overhead costs would be relevant in the financial appraisal of the contract

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