(a)[5]
Fill in the table below to show how overheads are apportioned and how the service department overheads are reapportioned.
(b)[4]
Calculate, to two decimal places, an overhead absorption rate for each production department, using an appropriate basis.
(c)[5]
Complete the table below to show the value of the closing inventory of component X, using AVCO.
(d(i))[6]
Calculate the profit expected in August 2025 for Option A.
(d(ii))[3]
Calculate the profit expected in August 2025 for Option B: buy extra materials from a new overseas supplier to cover the shortfall. The supplier charges $5 per kg.
(e)[7]
Advise the directors on which option they should select. Justify your answer.