Question no 2 A housekeeping support department budgets its costs at SR 40,000 per month plus SR 12 / hour. For January the following were the

Required:

A-       What is the support department’s allocation rate if estimated activity is the allocation base?

B         What is the support department’s allocation rate if actual activity is the allocation base?

C        List one advantages and one disadvantage for each types of allocation rate.


(3 points)

Question no 2 A housekeeping support department budgets its costs at SR40,000 per month plus SR 12 / hour. For January the followingwere the estimated and actual hours provided by the housekeeping support department to 3 operating department.Estimated hours spent cleaning Actual hours spent cleaning Department A 1600 1500Department B 1400 1600Department C 2000 1800Total 5000 4900Required: A- What is the support department’s allocation rate ifestimated activity is the allocation base? B What is the support department’s allocation rate if actualactivity is the allocation base?C List one advantages and one disadvantage for each types of allocation rate. (3 points)