Jet print Ltd specializes in printing advertising leaflets and is in the process of preparing its price list. The most requirement is for a folded leaflet made from a single sheet of A4 paper. From past records and budgeted figures, the following data has been estimated for a typical batch of 10,000 leaflets:

Artwork 130

Machines setting 4 hours @ 44 per hour

Paper 25 per 1,000 sheets

Ink and consumables 80

Printers wages 4 hours at 16 per hour

Note: printers wages very with volume.

General fixed overheads are 30,000 period during which a total of 1200 labour hours are expected to be worked.

The firm wishes to achieve 30% profit mark-up when 10,000 leaflets are produced and 30% profit margin when 20,000 leaflets are produced.

Required:

1. Calculate the selling price for 10,000 leaflets

2. Calculate the selling price for 20,000 leaflets

3. i. Define the meaning of the term cost object and provide three examples of cost objects.

ii. Distinguish between product costs and period costs.

iii. Explain responsibility accounting