MAJob Costing Question help

In future you must ask in the Ask the Tutor Forum is you want me to answer - this forum is for students to help each other. I think that either the question is badly written in your book or else you have copied it wrongly. It has to mean that they add 40% to the prime cost so as to cover the overheads. So the total cost of Job X is 700 + (40% x 700) You must surely have an answer in the same book in which you found the question, so does the answer not show the workings?

Hi, this question is from a lecture slide in my course and I cannot get the solution as of now. Unfortunately the layout of the question I wrote changed after posted the question so I have typed it out again below. I have checked and the information was presented this way. Company A bases its estimates on the following formula: Total cost = Prime cost + 40% overhead Selling price = Total cost + 25% profit Job X (in £) Direct Materials 200 Direct Wages (£5 per hour) 500 Prime Cost 700 Job Y (in £) Direct Materials 100 Direct Wages (£5 per hour) 600 Prime Cost 700 Calculate the selling price of each job. Is this the best way to absorb overhead?

Thank you for your reply and redirection to the Ask the Tutor Forum

You are welcome, but my real remains the same as before. The question is poorly presented, but the answer has to be as I wrote :-)