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How to calculate selling price using the ff info? Cost of bus Engine R 2000 Other Dm R500 DI rent labour 4hrs @500ph R2000 Variable

How to calculate selling price using the ff info?

Cost of bus

Engine R 2000

Other Dm R500

DI rent labour 4hrs @500ph R2000

Variable overheads (2hrs@R150 ph)R3p0

Budgeted monthly overhead R300 000

The absorption rate for fixed production overheads will be based on the direct labour hours,annual Budgeted direct labour hours,on a normal year are 18000 for the production of buses.company make a profit of 25% on full production cost from the sale of each bus.

Caccurate the selling price of the bus using full cost plus pricing approach?

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