Answer sheet Consumable material Saff costs Rent and rates Content insurance Heating & lighting Depreciation Total Secondary allocation P Q U V OVERHEADS RATE Department Amount Applied overheads Over/ under applied overheads Residential 1400 1600 A E I M Catering 2 300 1 300 B F N R W Z DD FF Housekeeping 2 700 1100 G K 0 S X Maintenance 900 500 D H L 0 T Y AA EE GG Total 7 300 4 500 4 440 1680 2160 4 440 24 520 Answer sheet Consumable material Saff costs Rent and rates Content insurance I Heating & lighting Depreciation M Total Secondary allocation P Q U V OVERHEADS RATE Department Amount Applied overheads Over/under applied overheads Residential Catering 1400 2 300 1600 1300 A E B F J N R W Z BB DD FF Housekeeping 2 700 1100 CGKO 0 S X Maintenance 900 500 D H L T Y AA EE GG Total 7 300 4 500 4 440 1680 2160 4 440 24 520 Answer sheet Consumable material Saff costs Rent and rates Content insurance I Heating & lighting Depreciation M Total Secondary allocation P Q U V OVERHEADS RATE Department Amount Applied overheads Over/under applied overheads Residential Catering 1400 2 300 1600 1300 A E B F J N R W Z BB DD FF Housekeeping 2 700 1100 CGKO 0 S X Maintenance 900 500 D H L T Y AA EE GG Total 7 300 4 500 4 440 1680 2160 4 440 24 520 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 1400 Catering 2300 Housekeeping 2700 Maintenance 900 Total 7 300 Consumable material Saff costs 1600 1300 1100 500 4 500 Rent and rates 4 440 1680 Content insurance Heating & 2 160 lighting Depreciation 4440 24 520 Total The following information is also available Residential Catering Total Housekeeping 720 Maintenance 360 3 300 1620 6 000 Area (m) Value of equipment 420 000 300 000 90 000 90 000 900 000 Number of 24 24 18 6 72 employees 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: 3 050 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