Oak Tree Ltd produces all kinds of antique furniture. The estimated costs for the production of one handmade sofa is provided below:

Each bench requires:

1. 20 metres of special netting material at 7 per metre, as well as 1 litre of weather-proof polish at 40.00 per litre.

2. 4 hours of labour is required to make each sofa and 1 hour to complete the polishing. The cost of direct labour for making the sofa is 31 per hour and 36.00 per hour for polishing work.

3. The company pays 20.00 per sofa to the original sofa designer.

The company also incurs the following indirect expenses:

a. Production overheads are absorbed based on the total direct labour hours at 24.00 per hour

b. Administration and transportation costs are to be 15% of total production cost.

c. Profit is to be charged at 10% of total costs

Required:

Prepare a detailed cost card showing prime cost, overheads, profit, and selling price of the sofa. Show your full workings.