Sam estimates that the business will make 30,000 units in total and will incur £90,000 in actual costs. Calculate the blanket rate and then apply it in the following examples to calculate the ‘over’ or ‘under’ recovery of overheads. What adjustment would need to be made in the year-end accounts:

a) if the business actually made 30,000 units and incurred £100,000 in overhead costs?

b) if the business actually made 35,000 units and incurred £90,000 in overhead costs?

c) if the business actually made 35,000 units and incurred £100,000 in overhead costs?