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Sir, Im doing an exercise about allocate and apportion overheads to different departments.
Im trying to allocate the overhead cost of Electricity, gas and water. They provide the following allocation basis to apply: Floor area, Fixture cost and Number of emloyees. I dont know what the suitable basis for this OH cost is?
None of the allocation bases are really suitable, but if forced to choose then I would choose floor area.
Exam questions will either tell you what basis to use or will make it very clear (unlike the question you have typed).