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NEED HELP ASAP ! The management team at RLS Limited is trying to decide which activity labour or machine hours) is best for absorbing overheads
NEED HELP ASAP ! The management team at RLS Limited is trying to decide which activity labour or machine hours) is best for absorbing overheads into its product cost. As the management accountant, you were presented with the following information by the production manager Cost Centre - XYZ Data for January 2021 Budgeted Actual Overheads $15.000 $16.000 Direcf labour hours 2000 1975 Direct wages $3,600 $3.810 Direct Material $6,000 $5.900 2800 2745 Machine hours 95 98 Units produced Required: A Calculate the predetermined overhead absorption rate using both activity levels [3 marka) B. Calculate over/under absorption for both activities. [6 marks] C Aduse management which activity should be used. Give reason for your answer. [2 marca]
NEED HELP ASAP !
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