A-LevelAccountingTraditional costing methods9706/12 · Feb/Mar 2023 · Q281 Mark
A company has two production departments, manufacturing and assembly, and a stores service department. The overheads are apportioned to each department using the appropriate costing information supplied. manufacturing assembly stores direct labour hours 8400 33600 machine hours 20 160 6720 total cost of the stores department $32 800 number of store requisitions 3000 2000 What are the overhead absorption rates for the two production departments in respect of the stores?
Amanufacturing department: $0.39 direct labour hour; assembly department: $0.98 machine hour
Bmanufacturing department: $0.58 direct labour hour; assembly department: $0.65 machine hour
Cmanufacturing department: $0.65 machine hour; assembly department: $0.58 machine hour
Dmanufacturing department: $0.98 machine hour; assembly department: $0.39 machine hour
✓ Correct answer
D: manufacturing department: $0.98 machine hour; assembly department: $0.39 machine hour
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