Frankel Trailers make horse-boxes to precise customer specifications. The following are predicted to occur during the forthcoming year which is about to start: Direct materials costs £50,000 Direct labour cost £160,000 Direct labour time 16,000 hours Indirect labour cost £25,000 Machine depreciation £8,000 Rent and rates £10,000 Heat light and power £5,000 Indirect materials £2,000 Other indirect costs £1,000 Machine time 3,000 hours All direct labour is paid the same hourly rate. A customer has asked for a quotation for a horse-box. It is estimated that this will require materials and components that will cost £2,150. It will take 250 direct labour hours to do the job, of which 50 will involve the use of machinery. The company adds 30% profit margin to full cost when quoting for work. Required: a) Deduce a logical cost for the job, the price to be quoted, and explain the basis of dealing with overheads that you propose. (15 marks) b) Explain the difference between a joint product and a bi-product, and how their accounting treatments differ. In the context of process costing for joint products, explain how relative sales values at the point of separation are determined when there are further processing costs for each product after the separation point.