QUESTION 3. (a) The main medical activities at the Newmarket University Hospitalare administered through three medical departments - Day Procedures, Osteodic and Surgical. These are supported by three service cost centres -Food Catering, Administration and Laundry Budgeted wariable overhead for the year is detailed below for each of the cost centres. Also given me details of budgeted service usage volume of activity by area Service Departments Admin Laundry Catering Medical ing Departments Day Charlie Surgical Budgeted Overhead Budgeted Meals 89,240 E19.150 448.000 0.002 467.120 20000 8.150 32.000 42,650 Budgeted Files 3,500 13,000 20.000 Budgeted loads of Washing 400 R.400 Budgendwo of activity patien Required in the step method, choosing the most Reallocate the service department budgeted overheads appropriate basis of allocation for each department (b) Then estimate the budgeted level of variable overhead per unit of the budgeted activity volume in each tredical billing department. [10 marks) DXdferent fins do their product costing in different ways with varying levels of detail Sale firms might use traditional cost allocations while others adopt nur approaches like Activity Based Costing One writer was quoted as saying "The more deta a fim collect the more accurate and precise product costing will be this will automatically make the firn more profitable". Discuss i s statement ist . You should refer to the action involved in choosing the costing system or methods that are most suitable for each individual fimm Tecali se Marks QUESTION 3. (a) The main medical activities at the Newmarket University Hospitalare administered through three medical departments - Day Procedures, Osteodic and Surgical. These are supported by three service cost centres -Food Catering, Administration and Laundry Budgeted wariable overhead for the year is detailed below for each of the cost centres. Also given me details of budgeted service usage volume of activity by area Service Departments Admin Laundry Catering Medical ing Departments Day Charlie Surgical Budgeted Overhead Budgeted Meals 89,240 E19.150 448.000 0.002 467.120 20000 8.150 32.000 42,650 Budgeted Files 3,500 13,000 20.000 Budgeted loads of Washing 400 R.400 Budgendwo of activity patien Required in the step method, choosing the most Reallocate the service department budgeted overheads appropriate basis of allocation for each department (b) Then estimate the budgeted level of variable overhead per unit of the budgeted activity volume in each tredical billing department. [10 marks) DXdferent fins do their product costing in different ways with varying levels of detail Sale firms might use traditional cost allocations while others adopt nur approaches like Activity Based Costing One writer was quoted as saying "The more deta a fim collect the more accurate and precise product costing will be this will automatically make the firn more profitable". Discuss i s statement ist . You should refer to the action involved in choosing the costing system or methods that are most suitable for each individual fimm Tecali se Marks