The following information relates to the production departments of Springson Ltd.

The factory overheads for the year ended 31 March 2014 were:

Required

a. Prepare an overhead apportionment schedule apportioning the factory overheads to the appropriate departments. 

b. Calculate the OARS for each production department. State the bases used and jve one reason for your choice.

Transcribed Image Text:

Cutting department Machining department Direct machine hours 4 000 33 000 Direct labour hours 30 000 20 000 Cost of machinery 20 000 260 000 Floor area (m) 9 000 21 000