The following direct costs were incurred on Job No. 415 of Standard Radio Company:
Materials: Rs. 4,010
Wages:
Department A; 60 hours @ Rs. 3 per hour
Department B; 40 hours @ Rs. 2 per hour
Department C; 20 hours @ Rs. 5 per hour
Overhead expenses for these three departments were estimated as follows:
Variable Overheads:
Department A: Rs. 5,000 for 5,000 labour hours
Department B: Rs. 3,000 for 1,500 labour hours
Department C: Rs. 2,000 for 500 labour hours
Fixed Overheads: Estimated at Rs. 20,000 for 10,000 normal working hours.
You are required to calculate the cost of Job No. 415 and calculate the price to give profit of 25% on selling price.