Marine Suppliers Ltd undertakes a range of work, including making sails for small sailing boats on a made-to-measure basis. The business expects the following to arise during the next month Direct labour cost Direct labour time Indirect labour cost Depreciation of machinery Rent and rates Heating, lighting and power Machine time Indirect materials Other miscellaneous indirect cost (overhead) elements Direct materials cost 60,000 6,000 hours 9,000 3,000 5,000 2,000 2,000 hours 500 200 3,000 The business has received an enquiry about a sail. It is estimated that the particular sail will take 12 direct labour hours to make and will require 20 square metres of sailcloth, which costs 2 per square metre. The business normally uses a direct labour hour basis of charging indirect cost (overheads) to individual jobs 1/ What is the full (absorption) cost of making the sail? 2/ Suppose that Marine Suppliers Ltd used a machine hour basis of charging overheads to jobs. What would be the cost of the job detailed if it was expected to take 5 machine hours (as well as 12 direct labour hours)