Bookdon plc manufactures three products, X, Y and Z, in two product cost centres: a machine shop and a fitting section; it also has two service cost centres: a canteen and a machine maintenance section. Shown below are next year?s planned production data and manufacturing cost for the business.

Planned overheads are as follows:

All machining is carried out in the machine shop. It has been estimated that approximately 70 per cent of the machine maintenance section?s cost is incurred servicing the machine shop and the remainder servicing the fitting section.

Required:(a) Calculate the following planned overhead absorption rates:1 A machine hour rate for the machine shop.2 A rate expressed as a percentage of direct wages for the fitting section.(b) Calculate the planned full cost per unit of Product X.

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х 4,200 units £11/unit Production Direct materials Direct labour: Machine shop Fitting section 6,900 units £14/unit 1,700 units £17/unit £4/unit £3/unit 3 hr/unit £2/unit £21/unit 4 hr/unit £6/unit £12/unit 6 hr/unit Machine hours Machine Fitting Canteen Machine Total shop section maintenance section £26,650 £90,380 £17,000 £25,000 Allocated overheads £27,660 £19,470 £16,600 Rent, heat and light Depreciation and insurance of equipment Additional data: Gross carying amount of equipment Number of employees £150,000 £75,000 £30,000 £45,000 18 14 4 4 Floor space occupied 3,600 sq m 1,400 sq m 1,000 sq m 800 sq m