A medicinal product ‘Supertab’ is produced in batches. Batch number x 308 has the following costs:

Production overheads are based on labour hours at £3 per hour. 20,000 tablets are produced, but there is a wastage of 10%. Non-production overheads are £15,000 for the month. There are usually 250 batches produced per month. There are 50 tablets in a container. The selling price will be 25% on cost.

Required:

What is the selling price of each container?

Transcribed Image Text:

Direct labour: Grade Direct materials: Type 123ABC 200 hours at 5.00 50 hours at 8.00 25 hours at 15.00 10 kilos at 8.00 5 kilos at 10.00 3 kilos at 15.00