Joshil Ltd. has two Production Departments, P1 and P2, and two Service Departments, Stores and General. The company has budgeted the given costs for the forthcoming period:
The given information is as well available:
Overheads are absorbed in both the Production Departments on a Machine Hour basis.
Required:
a) Make an Overhead Analysis Sheet for the period, by using suitable bases of apportionment.
b) Compute the absorption rate for each department.