Intermediate: Calculation of overhead rates and a product cost DC Limited is an engineering company which uses job costing to attribute costs to individual products and services provided to its customers. It has commenced the preparation of its fixed production overhead cost budget for 2001 and has identified the following costs:

The stores and maintenance departments are production service departments. An analysis of the services they provide indicates that their costs should be apportioned accordingly:

Transcribed Image Text:

(000) Machining 600 Assembly Finishing 250 150 Stores Maintenance 100 80 1 180