(a)[2]
Explain one difference between overhead allocation and overhead apportionment.
(b(i))[1]
State what is meant by a production department.
(b(ii))[1]
State what is meant by a service department.
(c)[8]
Fill in the table to apportion the budgeted overheads to each department. Then re-apportion the service department costs to the two production departments.
(d)[4]
Calculate the overhead absorption rate for both production departments using an appropriate basis. Give your answers to two decimal places.
(e)[2]
Explain the reason for the re-apportionment of the service department costs.
(f)[3]
State three limitations of using absorption costing.
(g)[4]
Calculate the price to quote for this special order.
(h)[5]
Advise Cuthbert whether or not he should accept the order. Justify your answer.