Question: ABC Bhd has three production cost centres (A, B and C) and two service cost centres (storage and maintenance) in its factory. The company re-apportions

ABC Bhd has three production cost centres (A, B and C) and two service cost centres (storage and maintenance) in its factory. The company re-apportions the cost of the service cost centres to the production cost centres in order to calculate budgeted overhead absorption rates.

The budgeted production overhead costs for a period allocated to the five cost centres were as follows:

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