(a(i))[1]
Define what is meant by cost centre.
(a(ii))[1]
Define what is meant by cost unit.
(a(iii))[1]
Define what is meant by direct cost.
(a(iv))[1]
Define what is meant by indirect cost.
(b)[6]
Complete the table so that the costs are apportioned to the production departments.
(c)[2]
Calculate, to two decimal places, an appropriate overhead absorption rate for each production department.
(d)[4]
Calculate whether each production department has over-absorbed or under-absorbed overheads.
(e(i))[2]
Calculate the budgeted hourly direct labour rate for each department.
(e(ii))[7]
Prepare a statement showing the total selling price that Alberto ought to quote the customer.
(f)[5]
Advise Alberto whether he should accept the customer’s proposed terms or not. Support your advice by discussing both financial and non-financial factors.