(a)[4]
Explain how allocation of overheads differs from apportionment of overheads.
(b)[4]
Re-apportion the service departments’ costs across the production departments.
(c)[4]
Calculate an overhead absorption rate, to two decimal places, for each production department.
(d)[4]
Explain why a business works out separate overhead absorption rates for each production department instead of using one factory-wide rate.
(e)[6]
Prepare a statement showing the quoted selling price for one unit of the product.
(f)[1]
Calculate the total cash the company would receive if the customer accepted the quoted price and then claimed a cash discount of $7\frac{1}{2}\%$.
(g)[7]
Advise the directors on whether they ought to move ahead with their plans. Justify your answer.