The following information relates to the production departments of Gadd Ltd:

The factory overheads for the year ended 31 December 2029 were:

a. Prepare an overhead apportionment schedule apportioning the factory overheads to the appropriate departments. Use the headings shown:

b. Calculate the overhead absorption rates for each production department. State the bases used and give one reason for your choice.

Transcribed Image Text:

Welding Processing department department Direct machine hours Direct labour hours 3,000 100,000 15,000 8,000 Cost of equipment Floor area m 20,000 100,000 4,000 12,000