Preview File Edit View Go Tools Window Help H O Q Wed 28 Apr 14:48 exam_280421.pdf Q Q b . D' A Q Search Page 2 of 5 - Edited exam_280421.pdf MANAGEMENT ACCOUNTING EVAN 3. Jason Oy manufactures three products, X, Y and Z, in two product cost centers: a machine shop and fitting section; it also has two service cost centers: a canteen and a machine maintenance section. Shown below are the next year' s planned production data and manufacturing cost for the business (max 12p): X Y Z Production 4200 units 6900 units 1700 units Direct materials 1 1/unit 4/unit 17/unit Direct labour: Machine shop /uni 4/unit 2/unit Fitting section 12/unit 3/unit 21/unit Machine hours hr/unit 3hr/unit thrunit Planned overheads are as follows: Machine fitting canteen machine total shop section maintenance section Allocated 27660 19470 16600 26650 90380 overhead Rent, heat, 17000 light depreciation 25000 and insurance of equipment Additiona data: Gross 150000 75000 30000 45000 carrying amount of equipment number of 18 14 1 4 employees 2 floor space 3600 sqm 1400 sqm 1000 sqm 800 sqm occupied All machining is carried out in the machine shop. It has been estimated that approximately 70% of the machine maintenance section s cost is incurred servicing the machine shop and the remainder servicing the fitting section. Required: a. Calculate the following planned overhead absorption rates: a. A machine hour rate for the machine shop . A rate expressed as a percenteage of direct wages for the fitting section. b. Calculate the planned full cost per unit of product X. L' APR 28 O P X W o