Bookal Ltd has the following data: Prod 1 Prod 2 Stores dept Maintenance dept Overhead costs...

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Bookal Ltd has the following data: Prod 1 Prod 2 Stores dept Maintenance dept Overhead costs $ Cost of material requisitions 40,000 35,000- M'nance hours needed (hrs) 8,000 4,500 1,500 24,000 16,000 10,000 Required: a) Use the repeated distribution method to apportion the overhead costs of the two service centres b) 8,000 15,000 8 marks Ascertain the total overhead costs of the production departments 7 marks Compare the overall cost of the production departments method and the traditional c) using the repeated distribution overhead absorption method. 3 marks Comment on the benefits or drawbacks of using the overhead absorption 2 marks d) repeated distribution method of Bookal Ltd has the following data: Prod 1 Prod 2 Stores dept Maintenance dept Overhead costs $ Cost of material requisitions 40,000 35,000- M'nance hours needed (hrs) 8,000 4,500 1,500 24,000 16,000 10,000 Required: a) Use the repeated distribution method to apportion the overhead costs of the two service centres b) 8,000 15,000 8 marks Ascertain the total overhead costs of the production departments 7 marks Compare the overall cost of the production departments method and the traditional c) using the repeated distribution overhead absorption method. 3 marks Comment on the benefits or drawbacks of using the overhead absorption 2 marks d) repeated distribution method of

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a Apportionment of Overhead Costs using the Repeated Distribution Method Step 1 Calculate the overhead absorption rates Overhead absorption rate for S... View the full answer