The following information has been obtained for Product R2-X that has been completed throughout a given period:

Skilled labour	112 hours at 10.00
Unskilled labour	90 hours at 7.50
Raw materials	1,110 units at 3.00 per unit

Product R2-X goes through two processes: mixing and refining. Budgeted overheads and budgeted activity for the two production departments the Mixing Department and the Refining Department - are detailed below:

	Overheads	Planned Activity
Mixing Department	30,000.00	5,000 machine hours
refining Department	25,000.00	4,000 machine hours

Product R2-X is made in batches of 1,500 litres.

Required:

a) Calculate an overhead absorption rate for the Mixing Department and the Refining Department using a suitable basis.

b) Calculate the total manufacturing cost per litre of Product R2-X, assuming that it required 200 machine hours in the Mixing Department and 300 machine hours in the Refining Department.