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Question 10 You are provided with the following information about Birkam plc, which has a departmental structure: Assembly Finishing Maintenance Total Total overheads (in f000)
Question 10 You are provided with the following information about Birkam plc, which has a departmental structure: Assembly Finishing Maintenance Total Total overheads (in f000) 475 575 350 1.400 Employee numbers 100 80 20 200 Floor area (sqm) 10,000 10,000 1,000 21,000 Value of machinery (in fm) 15 5 2 22 Direct labour hours 200,000 100,000 300,000 What proportion of the maintenance department's overheads should the finishing department absorb, assuming that overhead costs are apportioned to product cost centres using the most logical basis?| A. f116,667 B. $87,500 C. $79,545 D. $175,000
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