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

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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

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.