Reference no: EM132621116

Real Ltd received an order for 10 race coil-over struts for team Blackout from California. The units were manufactured as Job #525 and passed through three cost centres. Fabrication Hydraulics and Finishing whose overhead absorption rates are as follows:

Fabrication $80 per machine hour
Hydraulics $36 per labour hour
Finishing $48 per man hour

The following production costs and data were recorded:

Direct Materials $2 520

Labour:

Fabrication 160 hours @ $22.00 per hour
Hydraulics 280 hours @ $16.00 per hour
Finishing 120 hours @ $18.00 per hour
80 machine hours were recorded in Fabrication, and General and Administration overheads are absorbed at 20% of production cost. Profit is calculated at 40% mark-up.

Required:

Question 1: Calculate the total cost and selling price for job #525 showing a summarized job card.

Question 2: Prepare the job account for job #525.