Shown below is an extract from next year's plans for a business manufacturing three products, A, B and C, in three production departments. A B Production 4,000 units 3,000 units Direct material cost 7 per unit 4 per unit 6,000 units 9 per unit Direct labour requirements: Cutting department: Skilled operatives 3 hr/unit 5 hr/unit 2 hr/unit Unskilled operatives 6 hr/unit 1 hr/unit Machining department 1/2 hr/unit 1/4 hr/unit 3 hr/unit 1/3 hr/unit Pressing department 2 hr/unit 3 hr/unit 4 hr/unit Machine requirements: Machining department 2 hr/unit 11/2 hr/unit 21/2 hr/unit The skilled operatives employed in the cutting department are paid 16 an hour and the unskilled operatives are paid 10 an hour. All the operatives in the machining and pressing departments are paid 12 an hour.

Production departments Service departments Cutting Machining Pressing Engineering Personnel Planned total overheads £154,482 £64,316 £58,452 £56,000 £34,000 Service department Costs incurred for the benefit of other departments, as follows:
Engineering services 20% 45% 35% – –
Personnel services 55% 10% 20% 15% –
The business operates a full absorption costing system.
Required:
Calculate, as equitably as possible, the total planned cost of:

(a) One completed unit of product A.

(b) One incomplete unit of product B, which has been processed by the cutting and machining departments but which has not yet been passed into the pressing department.AppendixLO1