HOLCOT MANUFACTURING Holcot Manufacturing produces bicycle and has five departments. The following budgeted overhead was recorded at the beginning of the year: Indirect costs (Overheads) Factory power Heat and light Factory local Taxes () 200,000 100.000 50,000 Required: 1. Prepare an overhead analysis for Holcot Manufacturing 2. Re-apportion the administration and inspection totals to the two production departments only on the bases of the production departments' sub-totals 3. Re-apportion store totals to the two production departments only on the bases of number requisitions 4. Calculate the overhead recovery rate for : Maintenance and depreciation of equipment 250,000 Salaries 1,000,000 Further information is as follows: Assembly Painting Store orders (Number of requisitions) 90,000 10,000 Machine hours 25,000 20,000 Labour hours 60,000 30,000 Floor Areas (%) Administration 20% Store 10% Inspection 10% Assembly 40% Painting 20% Overhead Allocation Bases Factory Power 80% Maintenance & dep. Equip. 80% Heat and light (floor area) 40% Factory local taxes 40% [**** Assembly Painting Admin Store Inspection 20% 20% 20% 20% 10% 10% 20% 20% 10% 10% Salaries 600.000 100,000 300,000 a. Assembly using i. Machine hour ii. Labour hour b. Painting using i. Machine ii. Labour hours 5. Calculate the over or under absorption for both Assembly and Painting if at the end of the year the actuals are: Assembly Painting a. Machine hour 30,000 23,000 b. Labour hours 55,000 28,000