(a)[2]
Explain the meaning of 'batch costing'.
(b)[3]
Allocate the service departments’ costs back to the production departments using an appropriate basis for each one.
(c)[4]
Work out a suitable overhead absorption rate for each production department, giving answers to two decimal places.
(d)[6]
Calculate, to two decimal places, the total cost per circuit board for a batch of 1000 units.
(e)[3]
Prepare a quotation that gives the total selling price.
(f)[5]
Advise Anna on whether to allow Sally the discount, and justify your decision.
(g)[3]
Calculate the break-even output in units.
(h)[4]
Advise Anna on whether she should close this factory, giving both financial and non-financial reasons for your response.