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b) Sports World limited manufactures and sell sport equipment. It has three production departments and the budgeted overhead costs for the coming year are
b) Sports World limited manufactures and sell sport equipment. It has three production departments and the budgeted overhead costs for the coming year are as follows: Total (OMR) Rent for the factory Choose betwee20,000-40000(in thousands Depreciation (machine) Supervisors' salaries (production) Heating & Lighting 25,000 30,000 Choose between 5,000-8,000 (in thousands Departments Designing Production Department Department Finishing Department Floor area occupied (sq metres) 2000 6,000 1000 Machine value 5000 2000 | Direct labour hrs budgeted 5000 3000 2000 (i) Prepare a statement showing the overhead cost budgeted for each department showing the basis of apportionment used. (ii) Calculate suitable overhead absorption rates 4 Marks 2 Marks tal-10 Marks)
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