Question 1) WA cement Limited manufactures cement mix for large
construction companies. It has thee overhead costs to allocate.
These are rent ($300,000), electricity ($200,000) and insurance
(100,000) costs. These costs need to be allocated to four
departments- quality control, maintenance, fabrications and mixing.
The first two department has service departments. Rent costs are to
be allocated on the basis of floor space occupied, while
electricity costs are allocated the basis of machine hours.
Finally, insurance costs are allocated on...