Answer ALL the questions. QUESTION 1 1.1 Use the information provided below to answer the following questions. [100 MARKS] (20 Marks) The information given below relates to the forthcoming period for AWD manufacturer's operation. There are four cost centres of which two are involved in production and two are service cost centres. Total Production dept A Production dept B Service dept: Canteen Service dept: Stores R R R R R Allocated costs 700220 213 280 299 280 84 370 103 290 Other costs: Rent and rates Building insurance Electricity and gas Plant depreciation Plant insurance R 46 410 37 130 68 000 283 900 85 170 1 220 830 Production dept A Production dept B Service dept: Canteen Service dept: Stores Area occupied (m) 7 735 6 188 1 547 3 094 Plant at cost (R'000) 18 450 8 520 1420 No. of employees 600 300 30 70 Machine hours 54 400 1600 Direct labour hours 13 600 36 000 No. stores requisitions 54 800 6 800 Secondary allocation: Since the canteen serves all other departments, its costs should be apportioned first. REQUIRED 1.1.1 Prepare an overhead allocation statement showing the departmentalisation of the manufacturing overheads (Note: the primary and secondary allocations must be clearly indicated). 1.1.2 Calculate a production overhead absorption rate for production departments A and B (machine hours are used as the absorption base for production department A and number of employees as the basis for production department B). (12 Marks) (4 Marks)