QUESTION THREE An engineering company which uses job costing to attribute costs to individual products...
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QUESTION THREE An engineering company which uses job costing to attribute costs to individual products and services provided to its customers has began the preparation of its fixed production overhead cost budget for 2017 . Cost has been identified as follows: The stores and maintenance departments are production department and provide services as follows: The number of machine and labour hours budgeted for 2018 is: Machining Assembly Finishing Required: (a) Calculate appropriate overhead absorption rates for each production department for 2017. (12 marks)
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