cost accounting

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1 Pristine Products (PP) has three service departments and two operating departments. The service departments and their allocation bases are Factory Administration about hours). Custodial Services (square metres) and Personnel (employees). One operating department, Machining applies overhead on the basis of machine hours. The other operating department, Assembly applies overhead on the basis of direct labour hours Budgeted operating data for the upcoming year follows: Operating Departments Budgeted overhead before allocation Labour hours Square metres Employees Machine hours Direct labour hours Service Departments Factory Custodial Administration Services $750,000 $275,400 24,000 14,200 2,300 28 12 Personnel $38,300 36,000 10,000 22 Machining S922.440 60,000 70,000 44 135,000 101,000 Assembly $777,000 180,000 20,000 154 45,000 234,000 L Prepare a schedule to allocate service department costs to operating departments using the step method. Calculate the predetermined overhead rate for each operating department. (8 marka). You may not need to use all the highlighted cells. 16 Use this table to calculate the allocation percentages 12 Service Departments Operating Departments IN Factory Custodial Administration Services Personnel Machining Assembly Total 19 20 1 2 Operating Departments 6. Use this table to allocate the costs and calculate the predetermined overhead rates Service Departments 28 Factory Custodial Administration Services 5 Budgeted overhead before allocation $750,000 $275,400 Personnel $38,300 Machining $922.440 Assembly $777,000 Total $2.763,180 3 Budgeted overhead after allocation