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.