Answer to question 5(a) and 5(b)

Question 5 Gorm Ltd is large organization situated in Kasane. It manufactures a unique type of concrete transport truck. Gorm Ltd has two production departments (Assembly and Finishing) and two se departments (Canteen and technical department. Production departments focuses on making tl concrete trucks and services departments provides service to production departments and also service departments. The budgeted fixed overheads relating to the departments for the next quarter are: The following information is also available: Required a) Prepare table showing the allocation, apportionment, and re-apportionment (use the stepdown method for reapportionment.) of the fixed overheads between the production departments, using the most appropriate basis. [15 marks] b) Discuss the terms under and over recovery [3 marks]