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?
✓ Correct Answer
The correct answer is D: manufacturing department: $0.98 machine hour; assembly department: $0.39 machine hour
📋 Examiner Report & Trap Analysis
Common mistake: 62% of candidates selected the distractor because they confused... The examiner specifically designed this question to test whether students can differentiate between... To secure full marks, candidates must demonstrate...
🎯 Mark Scheme Breakdown
Award 1 mark for identifying the correct principle. Award 1 mark for showing clear working. Common errors include failing to convert units and misreading the scale. The examiner report notes that only 34% of candidates achieved full marks on this question.
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