Question: Groups 5 & 8 Supreme Products, a manufacturing concern, has two production departments: Welding and Assembly and two service departments: stores and Maintenance. Budgeted costs

 Groups 5 \& 8 Supreme Products, a manufacturing concern, has two

Groups 5 \& 8 Supreme Products, a manufacturing concern, has two production departments: Welding and Assembly and two service departments: stores and Maintenance. Budgeted costs for an upcoming period were as follows: A. Allocate and apportion the above overheads among the four departments. (15 marks) Required: B. Re-apportion the overheads of the service departments using the step down (elimination) ( 7 marks) C. Calculate an overhead absorption rate for Welding based on machine hours and an overhead method. absorption rate for Assembly based on direct labour hours. ( 3 marks)

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