From the information given below, you are required to:
(a) Prepare a standard cost sheet for one unit and enter on the standard cost sheet the costs to show sub-totals for:
(i) Prime cost
(ii) Variable production costs
(iii) Total production cost
(iv) Total cost
(b) Calculate the selling price per unit allowing for a profit of 15% of the selling price.

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The following data are given: Budgeted output for the year Standard details for one unit: Direct materials 40 square metres at £5.30 per square metre. Direct wages: Bonding Department - 48 hours @£2.50 per hour Finishing Department - 30 hours @ £1.90 per hour Budgeted costs and hours per annum: Variable overhead: Bonding Department Finishing Department Fixed overhead: Production Selling and distribution Administration £ 392,000 196,000 98,000 9,800 units £ 375,000 150,000 Hours 500,000 300,000