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 cost;
(iii) Total production cost;
(iv) Total cost.
(b) Calculate the selling price per unit allowing for a profit of 15 per cent of the selling price.
The following data are given:
Budgeted output for the year 9800 units
Standard details for one unit:
Direct materials 40 square metres at £5.30 per
square metre
Direct wages:
Bonding department 48 hours at £12.50 per hour
Finishing department 30 hours at £7.60 per hour
Budgeted costs and hours per annum:
Variable overhead:

(hours) () 500 000 Bonding department 375000 150000 Finishing department 300 000 Fixed overhead: () (hours) Production 392000 Selling and distribution 196000 98000 Administration