Calculate an overhead absorption rate for the Machine shop based on machine hours and Assembly shop based on direct labour hours.

The overhead absorption rate for the Machine shop is based on machine hours. $\text{Overhead Absorption Rate (Machine shop)} = \frac{\text{Budgeted Production Overheads}}{\text{Budgeted Machine Hours}} = \frac{\$180,000}{6,000 \text{ hours}} = \$30 \text{ per machine hour}$

The overhead absorption rate for the Assembly shop is based on direct labour hours. $\text{Overhead Absorption Rate (Assembly shop)} = \frac{\text{Budgeted Production Overheads}}{\text{Budgeted Direct Labour Hours}} = \frac{\$90,000}{5,000 \text{ hours}} = \$18 \text{ per direct labour hour}$

• Overhead Absorption Rate (Machine shop): \boxed{\30 per machine hour}$
• Overhead Absorption Rate (Assembly shop): \boxed{\18 per direct labour hour}$

$\text{Total Direct Materials} = \$2,000 + \$8,000 = \$10,000$

$\text{Total Direct Labour} = \$10,000 + \$5,000 = \$15,000$

$\text{Applied Overheads (Machine shop)} = 200 \text{ hours} \times \$30/\text{hour} = \$6,000$

$\text{Applied Overheads (Assembly shop)} = 300 \text{ hours} \times \$18/\text{hour} = \$5,400$

$\text{Total Cost} = \$10,000 + \$15,000 + \$6,000 + \$5,400 = \$36,400$

The mark-up is 20% on cost. $\text{Mark-up amount} = \text{Total Cost} \times 20\% = \$36,400 \times 0.20 = \$7,280$

$\text{Selling Price} = \$36,400 + \$7,280 = \$43,680$

• Selling Price for Job A101: \boxed{\43,680}$