lbury Instruments manufactures gauges for motor vehicle dashboards. The company has two production departments, Moulding and Assembly. There are three support departments: Maintenance, Personnel and Engineering. The usage of these support departments' output during 2020 is presented below.

Provision of Service Output in 2020 (in hours of service)

User of Service

Provider of Service

Personnel

Maintenance

Engineering

Personnel

Maintenance

250

Engineering

250

250

Moulding

2,000

1,750

2,250

Assembly

2,500

2,000

750

Total

5,000

4,000

3,000

The budgeted costs in Albury Instruments Pty Ltd's support departments during 2020are as follows:

Personnel

Maintenance

Engineering

Variable

$25,000

$40,000

$25,000

Fixed

$100,000

$75,000

$150,000

Required

1.Compute the OAR forAlbury Instruments for Moulding ( 30000 machine hours) and Assembly (40000 direct labour hours) round up to 2 decimal places.

2.Compute the total product cost and cost per unit if 2000 unitswere produced

Direct material $50 per unit

Direct labour hour per unit is hour and direct labour per hour is $24.

Manufacturing Overhead

Moulding - 5000 machine hours

Assembly - 8000 direct labour hours