(a)[8]
Apportion the overhead costs across the four cost centres, then reallocate the service centre costs to the production cost centres by using an appropriate basis.
(b)[4]
Calculate an appropriate overhead absorption rate for each production cost centre, to two decimal places.
(c)[4]
Calculate the total cost per unit for Product A and Product B.
(d)[4]
Calculate the over absorption or under absorption of overheads for each production cost centre.
(e)[1]
State what is meant by allocation.
(f)[2]
State what is meant by overhead costs.
(g)[2]
Explain why overhead costs are re-apportioned from service cost centres.
(h)[5]
Advise Rajesh whether he should change to a marginal costing system or not. Justify your answer.