(a) Specify and explain the factors to be considered in determining whether to utilize a single factory-wide...

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(a) Specify and explain the factors to be considered in determining whether to utilize a single factory-wide recovery rate for all production overheads or a separate rate for each cost centre, production or service department.

(12 marks)

(b) Describe three methods of determining fixed overhead recovery rates and specify the circumstances under which each method is superior to the other methods mentioned.

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