1. **Calculating Total Direct Material Cost:**
- Direct material requisitioned: R97,470.43
- Direct material returned to store: R1,396.00
- Total direct material cost = Direct material requisitioned - Direct material returned to store
- Total direct material cost = R97,470.43 - R1,396.00 = R96,074.43
2. **Calculating Total Direct Labor Cost:**
- Production department A: 146 hours at R48.00 per hour
- Production department B: 39 hours at R57.00 per hour
- Production department C: 279 hours at R61.00 per hour
- Total direct labor cost = (146 x R48.00) + (39 x R57.00) + (279 x R61.00)
3. **Calculating Total Machine Cost:**
- Cost of hiring special machine: R590.00
- Machine hours recorded against the prototype:
- Production department A: 411 hours
- Production department B: 657 hours
- Production department C: 502 hours
- Total machine cost = R590.00
4. **Calculating Total Cost of Production:**
- Total cost of production = Total direct material cost + Total direct labor cost + Total machine cost
5. **Calculating Profit Margin:**
- Price quoted for the prototype, including delivery: R172,000
- Profit margin = Price quoted - Total cost of production
By following these steps and calculating the costs as described above, you can determine the total cost of production and the profit margin for the prototype developed by the product design and development team at CGH Manufacturing Enterprises.
