Barney plc manufactures deluxe

Barney plc manufactures deluxe cat baskets in batches of 300. During April, Batch no. 567 took 20 hours to machine. Sixty cat baskets failed to pass an inspection, but of these, 40 were thought to be rectifiable. The remaining 20 were scrapped, and the scrap value was credited to the cost of the batch as a whole. Rectification work took nine hours. Costs were as follows:

Calculate:

(a) The cost of a full batch, in total and per unit, if all units pass inspection.

(b) The actual cost of Batch no. 567, in total and per unit, after crediting the recovery value of the scrapped items, and including the rectification costs.

(c) The loss incurred because of defective work.

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