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BizHub Limited has two (2) production departments: Assembly and Finishing; and one service department: Repairs. The overheads of each production department comprise directly allocated
BizHub Limited has two (2) production departments: Assembly and Finishing; and one service department: Repairs. The overheads of each production department comprise directly allocated expenses and a share of the overheads of the repairs department re-apportioned based on floor space. The floor space of the three (3) departments is 475, 285 and 190 square metres (m) for Assembly, Finishing and Repairs, respectively. The following incomplete production-related information is available concerning the apportionment: Production Departments Assembly Finishing Service department Repairs Budgeted allocated expenses (primary allocation) R960 250 R925 750 R595 000 Budgeted service department ? ? apportionment (secondary allocation) The total budgeted overhead costs allocated to the Assembly department amount Select one: A. R1 257 750 B. R960 250 C. R1 555 250 D. R1 332 125
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