12. The XYZ Electronics Company manufactures two products, P and Q. In a week it manufactures 100 items of its product Pand 40 items of product Q. For product P the number of machine hours in the production department is 5 hours per item and for product B 2 hours per item. Product P requires a total labour time of 10 hours item and product Q 5 hours per item. The labour is costed at an average rate of $5 per hour. The direct materials costs of product P are $4 per item and for product Q $10 per item. The overheads costs per week are $800. When the overhead costs are allocated on the basis of machine hours, the cost to be allocated to an item of product P will be b. When the overhead costs are allotted on the basis of labour costs, the cost to be allocated to an item of product P will be C The total direct costs, to the nearest pound, of an item of product P will be Ans ($6.90 $6.67 . $54)