12.11 Facts as in 12.10 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 2 hours of machine time in the machining department Each unit uses 1.5 direct labour hours in the finishing department.

Required: calculate the total production cost for one unit of the company’s product, using the overhead absorption rates calculated in exercise 12.10.