Question: Can i plase get some quick assistance with this question? ill upvote for any swift response. Thanks! The management team at Rs Limited is trying
The management team at Rs Limited is trying to decide which activity labour or machine hours) is best for absorbing overheads into its product cost. As the management accountant, you were presented with the following information by the production manager: Cost Centre. XYZ Data for January 2021 Budgeted $15.000 Actual Overheads $ 16,000 Direct labour hours 2000 1975 $3,600 $6,000 $3,810 $5.900 Direct wages Direct Material Machine hours Units produced 2800 2745 95 98 Required: A Calculate the predetermined overhead absorption rate using both activity levels. [3 marks] B. Calculate over/under absorption for both activities. [6 marks) c. Advice management which activity should be used. Give reason for your answer. [2 marks]
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