Question: Study the information given below and calculate the following: 1 . 1 Allocation rate for each of the production departments ( expressed to the nearest
Study the information given below and calculate the following: Allocation rate for each of the production departments expressed to the nearest cent based on direct labour hours. marks Overheads applied to Product Zap. marks INFORMATION Omega Manufacturers produces Product Zap and has gathered the following information with the objective of departmentalising its manufacturing overheads: Departments Machining Assembly Administration Maintenance Direct labour hours Machine hours Number of employees Value of machinery R R R R Floor area m m m m Materials usage R R R R The following are the budgeted manufacturing overheads for : R Municipal rates Insurance of machinery Supervision Depreciation on machinery Power usage Cost of inventory piling Transport subsidy Cooling of factory building Personal protective gear Secondary allocation: The number of employees is used as a basis for the maintenance department and direct labour hours as the basis for the administration department. Product Zap spends labour hours in the Machining department and labour hours in the Assembly department.
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