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A furniture-making business manufacture quality furniture to customer order. If has production departments and two service departments. Budgeted overhead costs for the coming year are

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A furniture-making business manufacture quality furniture to customer order. If has production departments and two service departments. Budgeted overhead costs for the coming year are as follow: Total $ Rent and rates 12,800 Machine insurance 6,000 Telephone charges 3,200 Depreciation 18,000 Production supervisors' salaries 24,000 Heating/lighting 6,400 70,400 The three production departments A, B and C, and the two service departments X and Y, are housed in the new building, the detail of which, together with wither statistics and information are given below: Departments B X Floor area occupied (sq. metres) 3000 1800 600 600 Machine value ($000) Direct labour hours budgeted 3200 1800 Labour rates per hour $8.80 $8.50 $8.40 $7.50 $7.50 Allocated overheads: Specific to each department (5000) 1.7 Service department X's costs apportioned 50% 25% Service department Y's costs apportioned 30% A 400 2 24 10 4 8 1000 2.8 1.2 0.8 0.6 25% 20% 50% A. Prepare a statement showing the overhead cost budgeted for each department, showing the basis of apportionment used. INE 454 Job 123 B. Two pieces of furniture are to be manufactured for customers. Direct costs are as follows: Job 124 Direct material $125 $79.70 Direct labour 10 hours Dept A 8 hours Dept A 6 hours Dept B 5 hours Dept B 7 hours Dept Calculate the total cost of each job 5 hours Dept C

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