problem 1: Swatathon Inc. has two production departments (A and B) and two service departments (maintenance and stores). The detail of next year’s budgeted overheads is illustrated below.
Details for each department are as shown below:
Service department’s services were used as shown below:
Make a statement to show the total overheads for each production department, exhibiting the basis of apportionment chosen.
problem 2: The given data relate to one year in department A.
Budgeted machine hours 25,000
Actual machine hours 21,875
Budgeted overheads Rs 350,000
Actual overheads Rs 300,000
Based on the data above, determine the machine hour absorption rate?
a) describe in brief four differences between the financial and management accounting.
b) What is meant by the word cost centre.