10.4A Brett's factory manufactures parts for bicycles. The balances in his books at 31 December 20X6 include the following items of cost;

£

Depreciation of factory 1 200 Production supervisor's salary 11 690 Factory cleaning 8 818 Depreciation of office equipment 2 120 Administrative staff salaries 12 420 Purchase of rubber for inner tubes 18 280 Purchase of metal for spoke manufacture 12 992 Purchase of oil for oiling plant and machinery 986 Electricity supply to factory 6469 Business insurance* 3 948 Depreciation of plant and machinery 5 888 Payment of wages to machine operators 26 969 Maintenance and repair of machinery 3 438 Opening stock of raw materials 3 307 Closing stock of raw materials 2 983

* The business insurance charge of £3948 covers both the factory and the administration office. Two-thirds of the charge relates to the factory.

1. What is the total prime cost for inclusion in Brett's manufacturing account for the year ending 31 December 20X6?

a) £58 241

b) £70255

c) £58 565

d) £59 551.

2. What is the total for indirect production overheads for inclusion in Brett's manufacturing account for the year ending 31 December 20X6?

a) £41 121

b) £29431

c) £55 661

d) £68 090.