A3. A confectionary manufacturer has two production departments - sweets and chocolates which are supported by a maintenance department. The following supervisor costs have been budgeted for the coming year: sweet department (75,000), chocolate department (50,000) and maintenance department (75,000.) They expect to also incur electricity costs of 160,000, rent of 280,000 and depreciation of 180,000. The management accountant has provided additional information which can be used to allocate overhead costs to the different departments. Sweets 650 Chocolate 350 Maintenance 400 30 50 10 60,000 30,000 10,000 Floor area in square metres Number of employees Power in kw hours Maintenance hours Number of products Machine hours Net book value - 400 200 100,000 75,000 55,200 50,000 99,000 40,000 1. Apportion power costs to the sweets, chocolate and maintenance departments Sweets Chocolate Maintenance A 96,000 48,000 16,000 74,286 40,000 45,714 C 53,333 88,889 17,778 D 88,889 71,111 2. Apportion rent costs to the sweets, chocolate and maintenance departments Sweets Chocolate Maintenance 108,000 54,000 18,000 B 83,571 45,000 51,429 102,857 20,000 D 100,000 80,000 3. Apportion depreciation costs to the sweets, chocolate and maintenance departments Sweets Chocolate Maintenance A 168,000 84,000 28,000 B 93,333 155,536 31,111 C 130,000 70,000 80,000 4. Apportion maintenance costs to the sweets and chocolate D 160,000 120,000 departments Sweets Chocolate 50,000 25,000 114,000 57,000 64,000 32,000 97,714 48,857 correct 5. Calculate the departmental rate for the sweets and chocolate departments based on machine hours Sweets Chocolate 7.26 7.97 9.33 5.15 2.51 2.58 3.08 34.07 correct