- Swithem Ltd is considering putting in a bid for a job coded 'Zeron' that would have the following costs: Materials 11000 kilos Rayex at 4 per kilo 8000 kilos Nayon at 2.50 per kilo Labour Dept A 2500 hours at 4 per hour Dept B 1600 hours at 5 per hour Production overheads The policy is to use predetermined overthead rates for each department based upon: Dept A: Pei labour hour Dept B: Per % of labour cost Budgeted information for the year under review was: Direct material 763000 Labour Dept A 38000 hours at 4 per hour. Labour Dept B 25000 hours at 5 per hour Production Overhead Dept A 760000 Production Overiead Dept B 750000 Administrative overhead 510000 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 price. Required: Cost job Zeron for Swithem plc and calculate the bid price that they should tender