QUESTION FIVE Swithern Ltd Is considering putting in a bid for a job coded 'Zeron' that would have the following costs: 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 38000 hours at K4 per hour Labour Dept B 25000 hours at K5 per hour Production Overhead Dept A K 760000 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 ter (20 marks)