2 15 Marks The Vaal Residence hotel is developing a cost accounting system. Initially it has been decided to create four cost centres: Residential and Catering deals directly with customers, Housekeeping and Maintenance are internal service cost centres. The following overheads details have been estimated for the next period: Residential Catering Housekeeping Maintenance Total Consumable 1400 2300 2700 900 7300 material Saff costs 1600 1300 1100 500 4.500 Rent and rates 4440 Content 1680 insurance Heating & 2160 lighting Depreciation 4440 Total 24 520 The following information is also available Residential Catering Housekeeping Maintenance Total 3300 1620 720 420 000 300 000 90 000 Area (m) Value of equipment Number of 24 employees 24 18 360 90000 6000 900000 72 In the period it is estimated that there will be 2 800 guest-nights and 16 000 meals will be served. Housekeeping works 70% for residential and 30% for Catering, and Maintenance works 20% for housekeeping, 30% for Catering and 50% for Residential. Required: 1. Prepare overheads statement showing clearly allocations and apportionments to each department. 2. Calculate appropriate overheads absorption rate for Residential and Catering. 3. Calculate the under or over-absorption overheads if actual results were as follows: a. Residential: 3050 guest nights with overheads of R13 200 b. Catering: 15 250 meals with overheads of R9 800. NB: Round off cost per unit to two decimals and total amounts to the nearest value. BACEXIA 2022 GROUP ASSIGNMENT 2 ANSWER QUESTION 1 Group information: Group number: Initials and Surname Student number SHEET 15 MARKS Answer sheet Residential Catering Housekeeping Maintenance Total Consumable material 1:400 2300 2700 900 7300 Saff costs 1600 1300 1100 500 4.500 Rent and rates A B C D 4440 Content insurance E F G 1680 Heating & lighting 1 J K L 2160 Depreciation M N 4440 Total 24520 Secondary allocation R T U W X Y OVERHEADS RATE Department Amount Z AA BB CC Applied overheads DD KE Over under applied overheads FF GG