PLEASE ANSWER QUESTION D

LINE 100% online.manchester.ac.uk BMAN21040 Online Exam Paper.pdf ~ Procurement Department and General Factory Support Department to the Machining Department and Assembly Department. (12 Marks) PTO Page 3 of 5 BMAN21040 d) Explain which support department cost allocation method best meets the purpose of allocating indirect costs with the cause-effect logic reasonably intact in this particular case and how this may necessitate trade-offs with the other criteria for cost allocations? Please also discuss the circumstances under which your response to this question would be different. (6 Marks) QUESTION 3 CarLux Ltd manufactures car accessories. One of the company's products is a set of seat covers that can be adjusted to fit nearly any small car. The company has a standard cost system in use for all of its products. According to the standards that have been set for the seat covers, the factory should work 3,870 hours each month to produce 2,150 sets of covers. The standard costs associated with this level of production activity are: Total Per set of seat covers Direct materials E42,570 19.80 Direct labour E 16, 125 7.50 Variable manufacturing overhead (based on direct E 7.095 3.30 N 9 MacBook Pro