Old MathJax webview

Old MathJax webview

Old MathJax webview

10 Average Stock K2,000 K1,500 Horse Power of Machines 120 95 Labour hours 1,000 4,000 Machine hours 3,000 2,500 K1,500 55 1,000 1,000 The following data summarizes the utilization of each of the service departments. Federal International Private Engineering Stores Cost of Material Requisitions K30, 000 K30, 000 K20, 000 K20,000 Engineering Hours needed 5,000 3,000 1,000 1,000 REQUIRED: (A) Carry out the allocation and apportionment of overheads to the five departments. (10 Marks) (B) Re apportion service department overheads to Manufacturing departments using Reciprocal method. (6 Marks) (C) Calculate Overhead absorption rates. (3 Marks) (D) Actual results for the period were: Federal International Private Labour Hours 500 1000 400 Machine hours 1,200 780 400 Overheads K3,500 K4,000 K2,000 Calculate the over/under absorption of the overheads. (6 Marks) [Total 25 marks] QUESTION THREE Encryption Inc. sells and maintains fax encryption hardware and Software. The Company has 3 manufacturing departments, Federal Systems International, and Private. The Company has also an Engineering department and Stores Department Federal systems contracts with government agencies. The international deals with foreign buyers and the private deals with private buyers. The company, for the past one month, had the following overheads Indirect wages and salaries Federal 4,000 International 3,000 Private 3,500 Engineering 2,500 Stores 1,500 780 NAPSA 600 Rent and Rates 600 450 Repairs to plant and machinery Depreciation of Plant and Machinery Heating and lighting 300 560 Power 350 20 Insurance of Stocks Medical costs Engineering Stores 3,000 2.000 6 7 The following information is also available Federal International Private Area in M2 10.000 8,000 7,000 No of Employees 20 12 15 BV Plant & machinery K10,000 K12.000 K5,000 K1,000 K2,000