(a) The following information relates to the budget for the year ahead.

Production overhead cost budget

 

£

Machinery costs

285,000

Set up costs

235,000

Purchasing costs

300,000

Total production overheads

820,000

The following table shows the total budgeted activities of the company (it manufactures many different types of products) and the details relating to the manufacture of two product lines:

S and T.

Data

Total

Product S

Product T

Machine hours

95,000

2 per unit

1 per unit

Number of production runs

235

20

5

Purchase orders

5,000

100

100

Production quantities of S & T

 

5,000 units

20,000 units

Calculate, using activity based costing, the production overhead costs that would be attributed to one unit of Product S and one unit of Product T.