Answer ALL questions. 1.1 1.2 QUESTION 1 (20 Marks) REQUIRED Study the information given below and calculate the: Allocation rate for each of the production departments, based on direct labour hours. (16 marks) Overheads applied to Product Nik. (4 marks) REQUIRED Lorus Manufacturers has gathered the following information with the objective of departmentalising its manufacturing overheads: Departments Machining Assembly Administration Recreation Direct labour hours 39 000 42 600 9000 2 250 Machine hours 5700 5 100 2 400 390 Number of employees 126 162 24 12 Value of machinery R186 000 R168 000 R24 000 R90 000 Floor area 7 800 m 6 600 m2 1 1 200 m2 600 m2 Materials usage R444 000 R174 000 R18 000 R60 000 The following are the budgeted manufacturing overheads for 2018: R Insurance Buildings 64 800 Machinery 18 720 Cafeteria 28 188 Depreciation on machinery 70 200 Maintenance of buildings 56 700 Cost of inventory piling 27 840 Protective clothing 8 748 Heating of factory building 12 150 Indirect materials Machining 4 386 Assembly 11 796 Administration 3 000 Recreation 1 866 Secondary allocation The number of employees is used as a basis for the recreation department and machine hours as the basis for the administration department Product Nik spends 15 labour hours in the Machining department and 9 labour hours in the Assembly department