Raymond Corporation estimates factory overhead of Rs. 345,000 for next fiscal year. It is estimated that 60,000 units will be produced at a material cost of Rs. 575,000. Conversion will require 34,500 direct labor hours at a cost of Rs. 10 per hour, with 25,875 machine hours.

FOH rate on the bases of Prime cost would be?

. Rs. 37.5 per unit

. Rs. 56.6 per unit

. Rs. 60 per unit

. Rs.1 per unit

Prime cost = Direct Material Cost +Direct Labor Cost +Direct Expense

Prime cost = Direct Material cost + conversion Cost