Answer Happy

Q 20 .
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) Bonding department Finishing department 375 000 150 000 500 000 300 000 Fixed overhead: (£) (hours) Production Selling and distribution Administration 392 000 196 000 98 000