From the information given below you are required to:
(a) Prepare a standard cost sheet for one unit and enter on the standard cost sheet the costs to show sub-totals for:
(i) Prime cost;
(ii) Variable production cost;
(iii) Total production cost;
(iv) Total cost.
(b) Calculate the selling price per unit allowing for a profit of 15 per cent of the selling price.
The following data are given:
Budgeted output for the year 9800 units Standard details for one unit:
Direct materials 40 square meters at £5.30 per square meter
Direct wages:
Bonding department 48 hours at £12.50 per hour
Finishing department 30 hours at £7.60 per hour
Budgeted costs and hours per annum:
Variable overhead:

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hours) Bonding department Finishing department Fixed overhead: 375000 150000 500000 300 000 hours) Production Selling and distribution Administration 392000 196000 98000