Missiondom Ltd who is into production of components has three departments called; Chemical mixing, Bottling and Maintenance.

Budgeted fixed overheads for the next half$-$year are given below:

Machinery Insurance P$50400$

Rent & rates P$136,800$

Indirect labour costs:

Chemical mixing P$53,625$

Bottling P$131,175$

Maintenance P$18,375$

Total P$203,175$

Fixed costs total P$390,375$

Additional information is provided below:

Department NBV Square metres $($area occupied$)$ Number of employees

Chemical mixing P$432,00066014$

Bottling P$216,00048048$

Maintenance P$72,000606$

Total P$720,0001,20068$

The fixed overheads are to be allocated or apportioned to departments using the appropriate basis.

The service department $($maintenance$)$ overheads are to be re$-$apportioned to Chemical mixing and Bottling; with $80\%$ of maintenance being spent on the Chemical mixing and $20\%$ of the time spend at Bottling.

$1\mathrm{.}1.$ You are required to prepare a table showing the allocation and apportionment of fixed overheads between the production departments, and re$-$apportionment of the s$1\mathrm{.}2.$ You have now been told that the chemical mixing department is machine intensive, and is budgeted to use $5,237$ machine hours, and the Bottling department is labour intensive and is budgeted to use $17,256$ labour hours. From your calculation in $1\mathrm{.}1.$ Calculate the overhead absorption rates for each production department. $(4)$

Use the following data to answer $1\mathrm{.}3$

One of the components produced by Missiondom goes through production process $1$ and $2.$ In the month of March $2024,$ process $1$ had the information provided below:

Input $18,000$ kgs at a cost of P$9,000$

Output $15,000$ kgs

Normal loss $3,000$ kgs

No abnormal loss nor abnormal gain.

Scrap value of losses P$0,20$ per kg$.$

$1\mathrm{.}3.$ You are required to calculate the cost of a kilogram $($kg$)$ of output. $(4)$

$1\mathrm{.}4.$ Given below is the information relating to one employee who works for Jonso Limited.

Alexander

Units produced $420$ units

Time allowed per unit $5$ minutes

Time taken $28$ Hours

Rate per hour P$18\mathrm{.}75$

Rate per unit P$1\mathrm{.}35$

i$)$ Required to calculate the remuneration for Alexander using the basic piece rate

ii$)$ Calculate the time saved. Service department.