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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

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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 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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