QUESTION $1$

$(20$ Marks$)$

A Cape Town$-$based manufacturing firm, CGH Manufacturing Enterprises $($CGHME$),$ has three production departments $($A$,$ B and $C)$ and the two service departments $(x$ and $Y).$ As part of the budgeting process, a senior cost accountant employed by CGHME has gathered the following annual overhead costs

$\backslash$table$[[,$R$],[$Indirect materials:,$],[$Production department A$,250000],[$Production department B$,402500],[$Production department C$,52500],[$Service department X$,10000],[$Service department Y$,50000],[$Indirect labour:,$],[$Production department A$,500000],[$Production department B$,500000],[$Production department C$,750000],[$Service department X$,550000],[$Service department Y$,740000],[$Heating and lighting,$350000],[$Property tax,$400000],[$Insurance of machinery,$180000],[$Depreciation of machinery,$960000],[$Insurance of buildings,$145000],[$Salaries of works management,$4600000]]$

The following information is also available:

$\backslash$table$[[,\backslash$table$[[$Carrying value of$],[$machinery$,$ R$]],\backslash$table$[[$Floor area$],[$occupied $(m^2)$