Intermediate: Product cost calculation
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;
(ii) 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.