Question: XYZ Engineering Services Ltd is asked to provide a quotation to replace the cylinder head for the engine of a machine in a local factory.

 XYZ Engineering Services Ltd is asked to provide a quotation to

XYZ Engineering Services Ltd is asked to provide a quotation to replace the cylinder head for the engine of a machine in a local factory. The items will need to be cast in a foundry and then passed to the finishing shop for machining to specification. Materials required will be 200kg ingot of high strength steel, which cost $10 per kg. Direct labour will be 15 hours in the foundry, and 20 hours in the finishing shop, of which 12 hours will be machine hours. Foundry workers are paid $10 per hour while the machine operators in the finishing shop are paid $12 per hour. Overheads are charged on the basis of 80% of direct labour cost in the foundry, and on the basis of $20 per machine hour in the finishing shop. Profit is to be 25% of cost price. Required: a. Prepare a job cost sheet showing the estimated cost of the job. (13 marks)

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