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The company Senso produces sensors for the auto industry, they have two products, Alpha and Beta. The following budget has been made for the year
The company Senso produces sensors for the auto industry, they have two products, Alpha and Beta. The following budget has been made for the year 2011 : The indirect production cost is to be allocated on the basis of total direct materials (for both products), and the indirect admin/sales cost is to be allocated on the sum of total production cost. 50% of the indirect production cost is variable, and 40% of the indirect admin/sales cost is variable. Calculate the indirect allocation rate to be used for the indirect production cost, when used in an absorbtion based cost calculation. (Provide your answer as desimal points, ie if you answer is 65%, you provide the answer as 0.65, with a punctuation mark, and not comma)
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