Apex Ltd manufactures three products X, Y and Z in two production departments; P1 and P2. The company also has two service departments; S1 and S2. The company's budgeted production data and manufacturing costs for the year 2021 were as follows:

Product

Production (units)

Direct materials (Shs. per unit) Direct labour: P1 (Shs. per unit)

P2 (shs. Per unit) Machine hours per unit

Additional information

X

4,200 11 6 12 6

Y

6,900 14 4 3 3

Z

1,700 17 2 21 4

1. Absorption rates in departments P1 and P2 are based on machine hours and labour wages respectively.

2. Budgeted overheads for rent, heating and lighting amounted to shs.17,000 while depreciation and insurance amounted to shs.25,000.

3. The costs of service department S2 are apportioned to production departments P1 and P2 at the ratio of 7:3 while the costs of S1 are apportioned to departments P1, P2 and S2 based on the number of employees.

4. Other information includes:

Budgeted overheads (Shs.) Equipment at net book value (Shs.) Number of employees

Floor area (metres square)

Required

P1 P2 S1 S2

27,660 19,470 150,000 75,000 18 14 3,600 1,400

16,600 26,650 30,000 45,000 4 4 1,000 800

required

Budgeted overhead absorption rates for the two production departments P1 and P2.