Use the information provided below to answer the following questions: 1.1 Prepare the Overhead Allocation Statement...

 

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Use the information provided below to answer the following questions: 1.1 Prepare the Overhead Allocation Statement that reflects the primary and secondary allocation of overheads. 1.2 1.3 H INFORMATION Calculate the allocation rate of each of the production departments. Express the answers to the nearest cent. Calculate the overheads applied to each unit of the product. Express the answers to the nearest cent. Number of employees Direct labour hours Kansas Ltd gathered the following statistics in order to allocate the overheads among the different departments for 2022: Plant and equipment at cost Materials usage A Machine hours Floor area in square metres Overheads Rent expense Depreciation on plant and equipment Utilities H Uniforms for employees 1 Rest room Insurance: The budgeted overheads for 2022 are as follows: Buildings Production Department A Plant and equipment 600 12 000 R300 000 R360 000 3 000 4 000 Production Department B 360 8.000 R200 000 R180 000 1500 4 000 Service Department M 240 4.000 R100 000 R60 000 500 2 000 R 120 000 60 000 72 000 36 000 12 000 24 000 30 000 The product spends 5 labour hours in Production Department A and 2.5 labour hours in Production Department B. The overhead allocation rates are based on labour hours, while the secondary apportionment of the service department takes place according to machine hours. Use the information provided below to answer the following questions: 1.1 Prepare the Overhead Allocation Statement that reflects the primary and secondary allocation of overheads. 1.2 1.3 H INFORMATION Calculate the allocation rate of each of the production departments. Express the answers to the nearest cent. Calculate the overheads applied to each unit of the product. Express the answers to the nearest cent. Number of employees Direct labour hours Kansas Ltd gathered the following statistics in order to allocate the overheads among the different departments for 2022: Plant and equipment at cost Materials usage A Machine hours Floor area in square metres Overheads Rent expense Depreciation on plant and equipment Utilities H Uniforms for employees 1 Rest room Insurance: The budgeted overheads for 2022 are as follows: Buildings Production Department A Plant and equipment 600 12 000 R300 000 R360 000 3 000 4 000 Production Department B 360 8.000 R200 000 R180 000 1500 4 000 Service Department M 240 4.000 R100 000 R60 000 500 2 000 R 120 000 60 000 72 000 36 000 12 000 24 000 30 000 The product spends 5 labour hours in Production Department A and 2.5 labour hours in Production Department B. The overhead allocation rates are based on labour hours, while the secondary apportionment of the service department takes place according to machine hours.

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11 Overhead Allocation Statement Primary Allocation Production Department A Labour hours P... View the full answer