QUESTION $1(20$ MARKS$)$

REQUIRED

Study the information given below and answer the following questions:

$1\mathrm{.}1$ Prepare the Overhead Allocation Statement. $(16$ marks$)$

$1\mathrm{.}2$ Calculate the overhead allocation rate of Production Department A$.(2$ marks$)$

$1\mathrm{.}3$ Calculate the overheads applied to the product from Production Department A$.(2$ marks$)$

INFORMATION

Maple Ltd gathered the following statistics in order to allocate their overheads among the different

departments during $2025$:

Production

Department A

Production

Department B

Service

Department M

Direct labour hours $1000050003000$

Machine hours $600040002000$

Value of the machinery R$225000$ R$135000$ R$90000$

Number of employees $540360300$

Floor space $6000$m$23000$ m$21000$ m$2$

Materials used R$600000$ R$450000$ R$75000$

The budgeted overheads for $2025$ are as follows:

Overheads R

Electricity $60000$

Protective clothing $48000$

Depreciation on machinery $54000$

Rent of factory buildings $135000$

Cafeteria $40000$

Insurance of the factory buildings $27000$

Insurance of the machinery $45000$

The product spends $10$ labour hours in Department A and $5$ labour hours in Department B$.$

Overhead allocation rates are based on labour hours, while the secondary apportionment of the service

department takes place according to machine hours.