Determine the cost of the machine.

В.1 Birdie Limited is a manufacturing company producing a variety of golf clubs. It operates from one factory that is geographically separated from its head office. The components for the clubs are assembled in the assembling department; they are then passed through to the finishing department where they are painted and packed. There are three service cost centres: administration, stores, and manufacturing support. The following costs were collected for the year to 31 May 2021: Department Allocated cost centre overhead costs (£,000) 225 Number of employees 67 Assembling Finishing Administration 60 134 300 89 120 84 Stores 17 Manufacturing support 34 Additional information: The allocated cost centre overhead costs are all considered to be indirect costs as far as specific units are concerned. During the year to 31 May 2021, 208,000 machine hours were worked in the assembling department, and 270,000 direct labour hours in the finishing department. During the year to 31 May 2021, the…

Define unit costs.

Explain the arguments for and against using historical cost as a measurement base.