Bookal Ltd has the following data:

	Prod 1	Prod 2	Stores dept	Maintenance dept
Overhead costs $	24,000	16,000	10,000	8,000
Cost of material requisitions	40,000	35,000	-	15,000
Mnance hours needed (hrs)	8,000	4,500	1,500

Required:

a) Use the repeated distribution method to apportion the overhead costs of the two service centres

b) Ascertain the total overhead costs of the production departments

c) Compare the overall cost of the production departments using the repeated distribution method and the traditional overhead absorption method.

d) Comment on the benefits or drawbacks of using the repeated distribution method of overhead absorption