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.. MTN LTE 3:29 PM 32% Done 1 of 89 QUESTION KOKO LTD operates five departments of which Department 1, 2 & 3 are production

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.. MTN LTE 3:29 PM 32% Done 1 of 89 QUESTION KOKO LTD operates five departments of which Department 1, 2 & 3 are production departments and Departments 4 and being stores and maintenance departments respectively. The actual cost incurred for the year ended 31st December 2019 were: GHS Rent 820,000 Insurance of Building 390,000 Power 540.000 Supervision 210,000 Machine Depreciation 400,000 Light and Heat 500,000 DEPARTMENTS Machining Assembling Finishing Stores Maintenance Indirect Materials 200.000 150,000 240.000 60.000 100.000 Indirect Wages 350.000 500,000 620.000 160,000 200.000 The following information is also available for the departments. DEPARTMENTS Machining Assembling Finishing Stores Maintenance Area Occupied (sq ft 600 300 150 90 Cost of machines (GHS) 120000 DO 40000 10000 Horse Power 500 350 1500 400 250 No. of Mat Requisition 55 80 25 - Maintenance Hours 400 560 Direct Labour Hours 75000 300.000 48,000 18.000 9.000 Machine Working Hours 380,000 101,000 280,000 15,000 40 The company produces two products KB and KT and the number of hours spent on the production of cach unit of KB and GH are: Machining Direct Labour Hours Machine Hours Assembling: Direct Labour Hours Machine Hours Finishing Direct Labour Hours Machine Hours KR 105 200 200 SS 60 205 SO 180 155 40 NO 156 Required: a Prepare the overheads analysis sheet showing the apportionment of overheads to the department and the re-distribution of the service departments overhead to the production departments (14 marks) b. Calculate for each production department the most appropriate overhead absorption rate given roses for your choices. (3 marks) c. Calculate the overheads chargeable to cach unit of the products KB and KT produced (3 marks) (Total 20 marks)

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