1. Kiswahili Ltd uses a batch costing system for its drilling. It uses a cost-plus system of price setting and sets a mark-up of 25% on sales values. Administration costs are absorbed at 10% of the selling price whereas factory overheads are absorbed at a rate of ksh. 1,200 per direct labour hour for department A and ksh. 900 per direct labour hour for department B.

Batch Q005 consists of 1,000 shafts to be drilled and bored and the following costs have been incurred on it:

• Dept A - 500 direct Labour hours @ Ksh. 1,000 per hour
• Dept B - 750 direct Labour hours @ Ksh. 800 per hour

Direct materials costing Ksh. 647,500 have also been incurred on batch Q-005

Required:

Compute the total cost, cost per unit and the sales value per unit for Kiswahili Ltd (10 marks)