REQUIRED (16 marks) Study the information provided below and calculate the following for 2018: (4 marks) Overhead allocation rates of each of the two production departments 1.1 1.2 Overheads applied to each unit of the product INFORMATION Hansel Ltd gathered the following statistics in order to allocate their overheads among the different departments Service Department A Department B Department K R42 000 R336 000 R252 000 Materials used 120 180 300 Number of employees 7 602 5 880 10 920 Direct labour hours R50 400 R126 000R75 600 Plant and equipment at cost 1 638 2 562 3 780 Machine hours 1 680 2 520 3 360 Floor area in square metres The budgeted overheads for 2018 are as follows: 7 560 Electricity 6 720 Cafeteria 18 900 Municipal rates 7 560 Depreciation on plant and equipment 6 048 Rest room Insurance: 3 780 Buildings 6 300 Plant and equipment The secondary apportionment of the service department takes place according to machine hours. The product spends 20 labour hours in the Department A and 10 labour hours in the DepartmentEB Overhead allocation rates are based on labour hours REQUIRED (16 marks) Study the information provided below and calculate the following for 2018: (4 marks) Overhead allocation rates of each of the two production departments 1.1 1.2 Overheads applied to each unit of the product INFORMATION Hansel Ltd gathered the following statistics in order to allocate their overheads among the different departments Service Department A Department B Department K R42 000 R336 000 R252 000 Materials used 120 180 300 Number of employees 7 602 5 880 10 920 Direct labour hours R50 400 R126 000R75 600 Plant and equipment at cost 1 638 2 562 3 780 Machine hours 1 680 2 520 3 360 Floor area in square metres The budgeted overheads for 2018 are as follows: 7 560 Electricity 6 720 Cafeteria 18 900 Municipal rates 7 560 Depreciation on plant and equipment 6 048 Rest room Insurance: 3 780 Buildings 6 300 Plant and equipment The secondary apportionment of the service department takes place according to machine hours. The product spends 20 labour hours in the Department A and 10 labour hours in the DepartmentEB Overhead allocation rates are based on labour hours