Super Qs

[super2010]

OAR is used to ?

1) to attribute overheads to products
2)to spread indirect cost across several cost centres
3)to control overheads
4) to allocate overheads costs to cost centre.

answer should be 1.

plz confirm da ans.

[Hymnody]

Purpose of Overhead Absorption Rate is to allocate Overheads to products. Hence 1).