QUESTION ONE.

$($A$)$Joy Company makes one product, the J$.$ Two types of labour are involved in the

preparation of a J $,$ skilled and semi$-$skilled. Skilled labour is paid K$10$ per hour and

semi$-$skilled K$5$ per hour. Eight skilled labour hours and four semi$-$skilled labour

hours are needed to produce a J $.$ A J is made up of three different direct materials.

Seven kilograms of direct material A$,$ four litres of direct material B and three metres

of direct material C are needed. Direct material A costs K$1$ per kilogram, direct

material B K$2$ per litre and direct material C K$3$ per metre. Variable production

overheads are incurred at Joy Company at the rate of K$2\mathrm{.}50$ per skilled direct labour

hour. A system of absorption costing is in operation at Joy Company. The basis of

absorption is skilled direct labour hours. For the forthcoming accounting period,

budgeted fixed production overheads are K$250,000$ and budgeted production of the

$J$ is $5,000$ units. Administration, selling and distribution overheads are added to

products at the rate of K$10$ per unit. A mark$-$up of $25\%$ is made on the J based on

total cost per unit $($that is total of production and non production costs$).$

Required

Using the above information prepare the standard cost card below for the J$.(7$ Marks$)$