1) Calculate the indirect allocation rate to be used for the indirect production cost, when used in an absorbtion based cost calculation.

2) if the company has used $100 in Direct Materials and $50 in Direct Labour, what is the company's absorption cost of the product?

3) Calculate the indirect allocation rate to be used for the admin/sales indirect cost, when used in an absorbtion-based cost calculation.

The company Senso produces sensors for the auto industry, they have two products, Alpha and Beta. The following budget has been made for the year 2011 : The indirect production cost is to be allocated on the basis of total direct materials (for both products), and the indirect admin/sales cost is to be allocated on the sum of total production cost. 50% of the indirect production cost is variable, and 40% of the indirect admin/sales cost is variable