Question: QUESTION 1 ( 2 0 MARKS ) REQUIRED Study the information given below and answer the following questions: 1 . 1 Prepare the Overhead Allocation

QUESTION 1(20 MARKS) REQUIRED Study the information given below and answer the following questions: 1.1 Prepare the Overhead Allocation Statement. (16 marks)1.2 Calculate the overhead allocation rate of Production Department A.(2 marks)1.3 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 R225000 R135000 R90000 Number of employees 540360300 Floor space 6000m23000 m21000 m2 Materials used R600000 R450000 R75000 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.

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