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A company is composed of four cost centers. Each month a budget is prepared anticipating the primary distribution of certain costs.The company expects to operate at 115% of budget volume in march, and this is reflected in the projected direct labor hours.The referenced BELOW items are listed at their normal (100% budget volume) levels. Maintenance and energy consumption are treated in the budget as purely variable expenses. CC= COST CENTER FS = FLOOR SPACE Norm Kilo Hrs = NORMAL KILOWATT HOURS CC: March 2006 Direct Labor hours: FS(square Ft): Normal Main: Norm Kilo Hrs: Forging : 3,580 5,000 $13,000 8,300 Machining : 10,032 20,000 $23,500 43,000 Finishing : 5,460 4,000 $3,450 3,050 Packing : 2,133 2,100 $ 500 2,000 TOTAL : 21,205 31,100 $40,450 56,350 Suppose that the normal power bill is $17,800 and normal building services cost is $67,000.(a) Develop the March budget allowances for each cost center. (b) Develop the budgeted overhead costing rate for each cost center and a blanket overhead costing rate for the entire company.
Please critique the following article:In your critique, please include and identification of methodology, as well as the gap and key findings.
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