(a)[8]
Allocate the budgeted overheads to the four divisions using an appropriate basis for each one. Then re-allocate the support costs to the three working divisions according to guest days.
(b)[3]
Calculate an overhead absorption rate, to two decimal places, for each of the three working divisions using budgeted guest days.
(c)[6]
Calculate the under-absorption or over-absorption of overheads for each division.
(d)[4]
Prepare a statement that works out the price to be quoted to the customer.
(e)[5]
Advise the directors whether or not they should raise their accommodation prices. Give reasons for your answer.
(f)[2]
State two benefits to a company of using a system of budgetary control.
(g)[2]
State two limitations to a company of using a system of budgetary control.