RST Ltd. is specialists in the manufacture of sports goods. They manufacture croquet mallets but purchase the wooden balls, iron arches and stakes required to complete a croquet set. Mallets consist of a head and handle. Handles use 2.5 board feet per handle at 50 per board foot. Spoilage loss is negligible for the manufacture of handles. Heads frequently split and create considerable scrap. A head requires 0.40 board feet of high quality lumber costing 60 per board foot. Spoilage normally works out to 20% of the completed heads. 4% of the spoiled heads can be salvaged and sold as scrap at 10 per spoiled head. In the department machining and assembling the mallets, 6 men work 8 hours per day for 25 days in a month. Each worker can machine and assemble 12 mallets per uninterrupted 40 minutes time frame. In each 8 hours working day, 15 minutes are allowed for coffee-break, 8 minutes on an average for training and 9 minutes for supervisory instructions. Besides 10% of each day is booked as idle time to cover checking in and checking out changing operations, getting materials and other miscellaneous matters. Workers are paid at a comprehensive rate of 76 per hour. The department is geared to produce 20,000 mallets per month and the monthly expenses of the department are as under: ........ 1,400 Finishing and painting of the mallets.... 20,000 Lubricating oil for cutting machines. .600 Depreciation for cutting machine.......... Repairs and maintenance .................... . 200 Power to run the machines.. 400 Plant Manager's salary. ....................... 9.400 Other overheads allocated to the department.............. 60.000 Required As the mallets are machined and assembled in lots of 250, prepare a total cost sheet for one lot and advise the management on the selling price to be fixed per mallet in order to ensure a minimum 33.33% margin on the selling price