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A factory in Ndola process turkeys for sale. The production process is classified into four cost centres and the relevant forecast information for each of
A factory in Ndola process turkeys for sale. The production process is classified into four cost centres and the relevant forecast information for each of the cost centres and the relevant forecast information for each of the cost centres is as follows: The following information is also available: Machine hours 15,700 REQUIRED: (a) An overhead cost statement which clearly shows basis of apportionment. (b) The labour hour overhead absorption rare for the Cutting Department and machine hour overhead rate for the Cooking Department. (c) How many alternative methods of overhead absorption might be used in this situation? What are the benefits and limitations with regard to using these rates at the company? (d) The actual overhead figures for the year were: Cutting Department k310,000; 12,000 labour hours. Cooking Department: K312,000; 15,810 machine hours. What is the under/over-absorption for each department
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