The following overheads have been budgeted for and must be allocated to the production and service...

 

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The following overheads have been budgeted for and must be allocated to the production and service departments. Rent of factory building Electricity Insurance on machinery Protective clothing N$120 000.00 N$ 76 500.00 N$ 60 000.00 N$ 24 000.00 Secondary allocation is done on the basis of direct labour hours. The following statistics is available: Number of employees Floor space Value of machinery Kilowatt hours Labour hours Department A 35 500 m² N$500 000.00 400 400 Department B 20 400 m² N$800 000.00 400 225 Service Department 5 100 m² N$200 000.00 50 95 Draw up an overhead statement and show the primary as well as the secondary allocations. Calculate the absorption rate per department using labour hours as basis. The following overheads have been budgeted for and must be allocated to the production and service departments. Rent of factory building Electricity Insurance on machinery Protective clothing N$120 000.00 N$ 76 500.00 N$ 60 000.00 N$ 24 000.00 Secondary allocation is done on the basis of direct labour hours. The following statistics is available: Number of employees Floor space Value of machinery Kilowatt hours Labour hours Department A 35 500 m² N$500 000.00 400 400 Department B 20 400 m² N$800 000.00 400 225 Service Department 5 100 m² N$200 000.00 50 95 Draw up an overhead statement and show the primary as well as the secondary allocations. Calculate the absorption rate per department using labour hours as basis.