16.13A The facts are as in Exercise 16.12A. The prime cost and timing details for one unit...

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16.13A The facts are as in Exercise 16.12A. The prime cost and timing details for one unit of production are:

£

Materials 14.20 Direct labour 18.00 Prime cost 32.20 Each unit uses two hours of machine time in the machining department and 1.5 direct labour hours in the finishing department.

Calculate the total production cost for one unit of the company's product, using the overhead absorption rates calculated in Exercise 16.12A.

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