(a)[4]
Using the direct labour hour method, Calculate the overheads to be absorbed by one unit of each product, giving your answers to two decimal places.
(b)[2]
Calculate the overall overheads absorbed by each product, assuming the budgets are achieved.
(c)[2]
State two reasons for under-absorption of overheads.
(d)[5]
Calculate the overall selling price for the order.
(e)[4]
Calculate the monthly profit at present.
(f)[6]
Prepare a marginal costing statement for one month assuming the directors choose the overseas supplier.
(g)[7]
Advise the directors whether they ought to purchase the direct materials from the overseas supplier or not. Justify your answer by considering both financial and non-financial factors.