MNO plc manufactures three products, E, F and G, in two product cost centers: a machine shop and a fitting section; it also has two service cost centers: a canteen and a machine maintenance section. Shown below are next year's planned production data and manufacturing cost for the business. E 13,800 units RM14/unit F 3,400 units RM17/unit G 8,400 units RM11/unit Production Direct materials Direct labor Machine shop Fitting section Machine hours RM4/unit RM3/unit 3 hr/unit RM2/unit RM21/unit 4 hr/unit RM6/unit RM12/unit 6 hr/unit Planned overheads are as follows: Machine shop Fitting section Canteen Total Machine maintenance section RM 26,650 RM 41,680 RM 32,010 RM 16,600 Allocated overheads Depreciation & insurance of equipment Rent, rates, heat and light RM 90,380 25,000 17,000 Additional data: Fitting section Machine shop 3,600 150,000 18 Machine Canteen maintenance section 1,000 800 30,000 45,000 4 4 Floor space occupied (in sq. m) Gross book value of equipment (in RM) Number of employees 1,400 75,000 14 All machining is carried out in the machine shop. It has been estimated that approximately 60 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 overheads to each product cost center. (11 marks) b) 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. (3 marks) c) Calculate the planned full cost per unit of product E, F and G