11. The Accountant for APC Manufacturing Pty Ltd, a manufacturer of Sports Wear has accumulated the following information related to the anticipated overhead costs for the coming year.

The firm uses the direct method for re-allocation of service department (Factory Office and Stores) costs to production departments (Assembly and Finishing).

11. The Accountant for APC Manufacturing Pty Ltd, a manufacturer of Sports Wear has accumulated the following information related to the anticipated overhead costs for the coming year. Factory Stores Assembly Finishing Total Office Dept Overhead $60,000 $15,000 $80,000 $45,000 $200,000 Departmental Information Plant values $15,000 $35,000 $270,000 $80,000 $400,000 Floor space 100m 200m 500m 300m 1,100m Requisitions 60 40 100 No. of 22 55 33 110 Employees Direct labour 2,000 6,000 8,000 hours Machine hours 12,650 2,350 15,000 The firm uses the direct method for re-allocation of service department (Factory Office and Stores) costs to production departments (Assembly and Finishing). The factory office would be reallocated to production departments according to the service rendered to production departments as measured by the number of employees in each production department. The stores would be reallocated to production departments according to the service rendered to production departments as measured by the number of materials requisitions in each production department. Required: a. Determine department overhead rates based on (i) Machine hours for Assembly and (ii) Direct Labour hours for Finishing. Show all the workings in your answers.b. Compute a plant wide overhead rate based on Direct Labour hours. Show all the workings in your answers, (Hints: Read Examples 13 to 16 on your workbook) Assembly Finishing Office Stores Total Dept overhead $80,000 $45,000 $60,000 $15,000 $200,000 Reallocate Office Reallocate Stores Total Driver Department overhead rates