Question
Question no 2 A housekeeping support department budgets its costs at SR 40,000 per month plus SR 12 / hour. For January the following were
Question no 2
A housekeeping support department budgets its costs at SR 40,000 per month plus SR 12 / hour. For January the following were the estimated and actual hours provided by the housekeeping support department to 3 operating department.
| Estimated hours spent cleaning | Actual hours spent cleaning |
Department A | 1600 | 1500 |
Department B | 1400 | 1600 |
Department C | 2000 | 1800 |
Total | 5000 | 4900 |
Required:
A- What is the support department's allocation rate if estimated activity is the allocation base?
B What is the support department's allocation rate if actual activity is the allocation base?
C List one advantages and one disadvantage for each types of allocation rate. (3 points)
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