Bookdon plc manufactures three products, X, Y and Z, in two production departments: a machine shop and a fitting section; it also has two service departments: a canteen and a machine main- tenance section. Shown below are next year's planned production data and manufacturing costs for the business. Production Direct materials Direct labour Machine shop Fitting section Machine hours X Y 4,200 units 11/unit 6,900 units 14/unit Z 1,700 units 17/unit 6/unit 12/unit 6 hr/unit 4/unit 3/unit 3 hr/unit 2/unit 21/unit 4 hr/unit Planned overheads are as follows:
Machine Fitting Canteen Machine Total shop section maintenance section Allocated overheads £27,660 £19,470 £16,600 £26,650 £90,380 Rent, rates, heat and light £17,000 Depreciation and insurance of equipment £25,000 Additional data:
Gross book value of equipment £150,000 £75,000 £30,000 £45,000 Number of employees 18 14 4 4 Floor space occupied 3,600 m2 1,400 m2 1,000 m2 800 m2 All machining is carried out in the machine shop. It has been estimated that approximately 70 per cent of the machine maintenance section’s costs are incurred servicing the machine shop and the remainder servicing the fitting section.
Required:

(a) Calculate the following planned overhead absorption rates:
(i) A machine-hour rate for the machine shop.
(ii) A rate expressed as a percentage of direct wages for the fitting section.

(b) Calculate the planned full cost per unit of product X.AppendixLO1