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Calculate the planned overhead absorption rates

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Reference no: EM13490223

Sazz Ltd. produces two products A and B in three production departments (assembling, painting and sales). It also has two service departments (maintenance and cleaning).

Required: Distribute the overheads based on an adequate basis and calculate the planned overhead absorption rates using the sequential method (use the most appropriate sequence regarding interrelationships - use book for help):

- Direct labour hour rate for assembling department - Machine hour rate for the painting department
- Rate per product for the sales department
Round appropriately for currency values.

Reference no: EM13490223

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