Burns Limited has three production departments (processing, assembly and finishing) and two service departments (administration and work study). The following information relates to April 2018:

Apportionment of costs: 

Total machine hours: Processing 25 000 

All units produced in the factory pass through the three production departments before they are put into stock. Overhead is absorbed in the processing department on the basis of machine hours, on the basis of direct labour hours in the assembling department, and on the basis of the direct labour cost in the finishing department. 

The following details relate to unit XP6:

XP6: Number of machine hours in the processing department = 6 

Required:

Calculate the total cost of producing unit XP6.

Transcribed Image Text:

Direct material Processing Assembling Finishing Direct labour Processing (£4 x 100 000 hours) Assembling (£5 x 30 000 hours) Finishing (£7 x 10 000 hours) + (£5 x 10 000 hours) Administration Work study Other allocated costs Processing Assembling Finishing Administration Work study £ 100 000 30 000 20 000 400 000 150 000 65 000 33 000 15 000 20 000 10 000 35 000 12 000