09. You have been asked to suggest a method of deducing the full cost of various production orders of Cheryl Ltd. This method will be used as a basis for setting prices The production orders vary greatly in size and nature from one to the next The following information has been taken from the budget for the forthcoming financial year: Direct labour hours Machine hours Direct material 70,000 hours 75,000 hours 16,000 kg Manufacturing costs: Power Direct materials Machine maintenance and repairs Factory heat and light Lubricants and cleaning materials Direct labour Depreciation: factory buildings 40.000 200,000 38.000 4,000 6.000 700.000 130,000 402.000 100,000 machinery Indirect labour is not departmentalised for accounting purposes All direct labour is paid the same hourty rate Required