Attempt any FOUR $(4)$ questions.

QUESTION TWO

Viva Meridian Bank $($VMB$)$ has three revemue earning departments: Personal Banking. Corporate Banking, and Mortgages and Loans. The business operates a system of departmental accounting and the following is budgct information for quarter $2$ :

$($a$)$ Prepare an overhead cost analysis, dearly showing the basis of apportionment. $(9$ marks$)$

$($b$)$ Calculate the departmental overhead absomption rate on the basis of the number of customers.

$(3$ marks$)$

$($c$)$ Define the following terms in accounting for overheads:

$($i$)$ Overheads

$($ii$)$ Cost allocation

$($iii$)$ Cost apportionment

$($iv$)$ Cost absorption

$(8$ marks$)$

$[$Total: $20$ Mariss$]$

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