2) Cost apportionment involves ______.

A. the sharing out of costs to products B. the sharing out of common costs to departments C. the sharing out of overheads to service departments D. the allocation of direct costs to departments The following data are to be used for questions 3 and 4 below: Budgeted labor hours 8,500 Budgeted overheads RM148,750 Actual labor hours 7,928 Actual overheads RM146,200

3) What is the overhead absorption rate (OAR)? A. RM17.50 B. RM17.20 C. RM18.44 D. RM18.76

4) What is the amount of overhead under/over-absorbed? A. RM2,550 under-absorbed B. RM2,529 over-absorbed C. RM2,550 over-absorbed D. RM7,460 under-absorbed