(a)[2]
State two drawbacks of absorption costing.
(b)[2]
Calculate, to two decimal places, suitable overhead absorption rates for each department.
(c)[6]
Calculate the kitchen table's selling price.
(d)[2]
State two reasons why a business may over-absorb overheads.
(e(i))[11]
Calculate the forecast monthly profit for Option A.
(e(ii))[11]
Calculate the forecast monthly profit for Option B.
(f)[7]
Recommend which option the directors should select. Justify your answer.