Consider the annual expense of a plant in the following table: Types of expenses Amount of money($)
Direct labor 5,000,000
Materials 1,000,000
Factory expense 1,500,000
Corporate expense 4,000,000
a) Determine factory overhead rate, cooperate overhead rate
b) Suppose that this plant will produce 100 products which are ordered from customer with processing time is 150 hours. The total time for processing the parts (including setup and other direct labor) is 100 hr. Direct labor cost is $18.00/hr. The material cost is provided by the customer.
1) Determine the cost of the job.
2) Determine the price should be quoted to the customer if the company uses a 10% markup?
Noted that the total cost =direct labor cost +material cost + overhead cost.