TUTORIAL QUESTION (20 marks) The factory of Proline Ltd consists of three production departments (A. B and C) and one service department (D). The company makes a range of products with total budgeted manufacturing overheads of N$973 560 for the next year. Department A has 10 direct employees who each work 37 hours per week. Department has five machines each of which is operated for 24 hours per week. Department C is expected to produce 148 000 units of final product during next year. The company will operate for 48 weeks during next year. Overheads to be incurred directly by each department are budgeted as follows: Department A N$261 745 Department B N$226 120 Department C N$ 93 890 Department D NS 53 305 The balance of budgeted overheads is to be apportioned to departments as follows: Department A 40% Department B 35% Department 20% Department D 5% Service Department overheads are apportioned equally to each production department Required 2.1 Draw up a worksheet to apportion the overheads to the four departments, clearly showing the primary apportionment. Apportion the cost of Service Department to the production departments (Secondary apportionment). 2.2 2.3 Calculate the budgeted overhead absorption rates for the three production departments, CS Scanned with CamScanner