Which of the following procedure is incorrect for attributing overhead costs to cost units?
I. Collecting production overhead costs by item
II. Establishing cost centres
III. Allocating and apportioning overhead costs to cost centres
IV. Apportioning service cost centre costs to production cost centres
V. Absorbing production cost centre costs into cost units
1
All of the above are correct
2
All of the above are incorrect
3
(II) and (IV) are incorrect
4
(II) is incorrect