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 pnce per unit allowing for a profit of 15% 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 metres at £5.30 per square metre Direct wages:
Bonding department 48 hours at £2.50 per hour Finishing department 30 hours at £1.90 per hour Budgeted costs and hours per annum:

Transcribed Image Text:

Variable overhead: () (hours) Bonding department 375 000 500 000 Finishing deparment 150 000 300 000 Fixed overhead: Production 392 000 Selling and distribution 196000 Administration 98 000