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: 1.1 Allocation rate for each of the production departments (expressed to the nearest cent), based on direct labour hours. (16 marks)1.2 Overheads applied to Product Zap. (4 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 3000020000100005000 Machine hours 8000700030002000 Number of employees 25010050100 Value of machinery R200000 R180000 R30000 R90000 Floor area 4000 m23000 m22000 m21000 m2 Materials usage R250000 R150000 R70000 R30000 The following are the budgeted manufacturing overheads for 2025: R Municipal rates 40000 Insurance of machinery 25000 Supervision 30000 Depreciation on machinery 100000 Power usage 60000 Cost of inventory piling 35000 Transport subsidy 36000 Cooling of factory building 24000 Personal protective gear 20000 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 10 labour hours in the Machining department and 8 labour hours in the Assembly department.

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