Swithern Ltd is considering putting in a bid for a job coded 'Zeron' that would have the following costs: Materials 11000 kilos Rayex at 8 000 kilos Nayon at Labour Dept A 2 500 hours at Dept B 1600 hours at K4 per kilo K2.50 per kilo K4 per hour K5 per hour Production overheads The policy is to use predetermined overhead rates for department based upon: Dept A: per labour hour Dept B: per % of labour cost Budgeted information for the year under review was Direct material K763 000 Labour Dept A 38 000 hours at K4 per hour Labour Dept B 25 000 hours at K5 per hour Production Overhead Dept A K 760 000 Production overhead Dept B K750 000 Administrative overhead K510,000 and to be recovered on the basis of production cost. You are told that usual company policy is to take a profit of 40% of selling price. Required: Cost job Zeron for swithern PLC and calculate the bid price that they should ten (20 marks). 4