Question: Question 3 Pleasance Ltd has split its forecast overheads for the forthcoming year into two cost pools. Pool 1-Receiving and inspecting Pool 2-Production set

Question 3 Pleasance Ltd has split its forecast overheads for the forthcoming

Question 3 Pleasance Ltd has split its forecast overheads for the forthcoming year into two cost pools. Pool 1-Receiving and inspecting Pool 2-Production set up 560,000 450,000 The overheads in pool 1 are driven by the number of orders, whilst the overheads in pool 2 are driven by the number of set ups. For the forthcoming year, Pleasance Ltd is expecting to have 280 orders and 1500 set ups. The company is expecting to make 10,000 units of product DN in the year, which will require 15 orders and 20 set ups. Product DN also requires a component costing 2.50 per unit. Required Calculate the forecast full cost per unit of product DN for the forthcoming year. (5 marks)

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