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Question 5 Gorm Ltd is large organization situated in Kasine. It manufactures a unique type of concrete transport truck, Gorm Ltd has two production departments

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Question 5 Gorm Ltd is large organization situated in Kasine. It manufactures a unique type of concrete transport truck, Gorm Ltd has two production departments (Assembly and Finishing) and two service departments (Canteen and technical department. Production departments focuses on making the concrete trucks and services departments provides service to production departments and service departments. The budgeted fixed overheads relating to the departments for the next quarter are: Required a) Prepare a 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) Diseuss the terms under and over recovery [3 marks]

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