Batch No. X37 incurred the following costs:

Factory Overheads are absorbed on labour hours and the rates are £8 per hour for Dept A and £5 per hour for Dept B.
The firm uses a cost plus system for setting selling prices and expects a 25% gross profit (Sales Value minus Factory Cost).
Administration overheads are absorbed as 10% of selling price.
Assuming that 1,000 units were produced in Batch No. X37:

a. Calculate the selling price per unit.

b. The total amount of administrative overheads recovered by Batch No. X37.

c. The notional net profit per unit.

Transcribed Image Text:

Dept A B Direct Materials 420 labour hours at 3.50 686 labour hours at 3.00 3,280