Question: QUESTION 1 ( 2 0 MARKS ) REQUIRED Study the information given below and answer the following questions: 1 . 1 Prepare the Overhead Allocation
QUESTION MARKS REQUIRED Study the information given below and answer the following questions: Prepare the Overhead Allocation Statement. marks Calculate the overhead allocation rate of Production Department A marks Calculate the overheads applied to the product from Production Department A marks INFORMATION Maple Ltd gathered the following statistics in order to allocate their overheads among the different departments during : Production Department A Production Department B Service Department M Direct labour hours Machine hours Value of the machinery R R R Number of employees Floor space m m m Materials used R R R The budgeted overheads for are as follows: Overheads R Electricity Protective clothing Depreciation on machinery Rent of factory buildings Cafeteria Insurance of the factory buildings Insurance of the machinery The product spends labour hours in Department A and 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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