assuming that 1 000 units were produced in batch no 37 calculate 619601

Batch No. 37 incurred the following costs:

Factory overheads are absorbed on labour and the rates are Rs. 8 per hour for Department A and Rs. 5 per hour for Department B. The firm uses a cost plus system for setting selling price and expects a 25% gross profit (sales value minus factory cost).

Administrative overheads are absorbed as 10% of selling price.

Assuming that 1,000 units were produced in Batch No. 37, calculate:

1. the selling price per unit
2. the total amount of administrative overheads recovered by patch No. 37
3. the notional net profit per unit