The following information was obtained from a company.

Production (x) Costs ($)

250 4 050

750 4 250

500 4 100

1 000 4 000

2 000 6 000

1 500 5 000

1 375 5 500

1625 4 750

Required:

Using the High-Low method, determine the variable cost per unit

a.

Which of the following is CORRECT when considering the allocation, apportionment and reapportionment of overheads in an absorption costing situation?

a.

Only production related costs should be considered

b.

Any overheads assigned to a single department should be ignored.

c.

Costs may only be reapportioned from production centres to service.

d.

Allocation is the situation where part of an overhead is assigned to a cost centre