a) X plc intends to use relevant costs as the basis of the selling price for a special order: the printing of a brochure. The brochure requires a particular type of paper that is not regularly used by X plc although a limited amount is in X plc's inventory which was left over from a previous job. The cost when X plc bought this paper last year was $15 per ream and there are 100 reams in inventory. The brochure requires 250 reams. The current market price of the paper is $26 per ream, and the resale value of the paper is $10 per ream. What is the relevant cost of the paper in this situation? (LO3) (BT Level: Apply) (5 Marks) b) All of a company's skilled labour, which is paid $8 per hour, is fully employed manufacturing a product to which the following data refers: Selling price $ per unit $ per unit 60 50 Less variable costs: Skilled labour Other costs Contribution 20 15 The company is evaluating a contract which requires 90 skilled labour hours to complete. No other supplies of skilled labour are available. What is the total relevant skilled labour cost of the contract? (LO3) (BT Level: Apply) (5 Marks) (35) 25