(a)[4]
Explain two disadvantages for a business of using a budgeted overhead absorption rate.
(b(i))[2]
Spread the maintenance department overhead costs between the drilling and finishing departments.
(b(ii))[2]
Calculate, to two decimal places, a budgeted overhead absorption rate for the drilling and finishing departments.
(c)[3]
Calculate the total actual wages paid to the maintenance engineers for the six-month period.
(d)[8]
Calculate the over or under-absorption of production overheads for each department for the six-month period.
(e)[7]
Advise Aramis whether or not he should accept the order. Justify your answer using both financial and non-financial factors.
(f)[4]
State four factors that a business should take into account before changing its supplier.