WHAT IS THE AMOUNT WILL THE COMPANY BID FOR THE CERAMIC PLATES? SHOW A DETAILED SOLUTION.

Plato Company is to submit a bid on the production of 22,500 ceramic plates. It is estimated that the cost of materials will be P26,000 and the cost of direct labor will be P30,000. Factory overhead is applied at P2.70 per direct labor hour in the Molding Department and at 35% of the direct labor cost in the Decorating Department. It is estimated that 2,000 direct labor hours, at a cost of P18,000 will be required in the Molding Department. The company wants a markup of 45% of its total production cost. How much will the company bid for the ceramic plates?