(a(i))[1]
State the meaning of cost centre.
(a(ii))[1]
State the meaning of fixed cost.
(a(iii))[1]
State the meaning of indirect labour.
(b)[5]
Fill in the table to display the total overheads for each department and the reapportionment of service department overheads.
(c)[4]
Calculate, to two decimal places, the overhead absorption rate for each production department using a suitable basis.
(d)[2]
State two reasons why overheads may be under-absorbed.
(e)[3]
Calculate the saving per unit from paying experienced labour at the higher rate.
(f)[8]
Set out a statement showing the total selling price for the customer’s order.
(g)[5]
Advise Ameerah on whether she should use marginal costing instead of absorption costing. Support your advice.