4.3 Pieman Products Ltd makes road trailers to the precise specifications of individual customers. The following are predicted to occur during the forthcoming year, which is about to start: Direct materials cost 50,000 Direct labour cost 160,000 Direct labour time 16,000 hours Indirect labour cost 25,000 8,000 Depreciation of machine Rent 10,000 5,000 Heating, lighting and power Indirect materials 2,000 1,000 3,000 hours Other indirect cost (overhead) elements Machine time All direct labour is paid at the same hourly rate. A customer has asked the business to build a trailer for transporting a racing motorcy- cle to race meetings. It is estimated that this will require materials and components that will cost 1,150. It will take 250 direct labour hours to do the job, of which 50 will involve the use of machinery. Required: Deduce a logical cost for the job and explain the basis of deal ing with overheads that you propose