(a)[5]
Complete the table below to show how factory overheads are apportioned and how service department overheads are then reapportioned.
(b)[2]
Calculate, to two decimal places, an overhead absorption rate for each production department on a suitable basis.
(c)[5]
Calculate the selling price to be quoted for this order of 40 units.
(d)[2]
State two reasons for under absorption of overheads.
(e)[4]
Calculate the profit earned each year from Product Exe.
(f)[5]
Calculate the combined profit from both products in the first year if this plan is put into operation.
(g)[7]
Advise the directors whether this plan should be put into operation. Justify your answer by considering both financial and non-financial factors.