Question - Simpson Manufacturing is a small clothing manufacturer using machine hours as the single cost driver to allocate manufacturing support costs to the various jobs contracted during the year. The following estimates are provided for the coming year for the company and for the Wautauga County School Uniform job.

                                            Company             Wautagua County Job

Direct materials                $500,000                   $1,000

Direct labour                      $60,000                   $1,600

Manufacturing

Support costs                    $160,000

Markup                              32%

Machine hours                  40,000                       600

Required:

A. Determine the amount of manufacturing support costs estimated for the Wautaga County job.

B. Determine the bid price for the Wautauga County's job.