OVERHEADS QUESTIONS

PLEASE ANSWER CLEARLY AND ASAP!!! thank you!!!

You are given the following information for International Ltd regarding the expected overheads for their Irish operation for the year 2021. Please note that Dept.1 and Dept.2 are production departments; Serv.1 is a Maintenance Department and Serv.2 is a Canteen service. The overheads forecast for the company for the year are as follows: Dept.1 Dept.2 Servi Serr3 Total Indirect Labour 75,000 40,000 JE 17,000 14,000 E146,000 Indirect Material 25.000 42.000 12.000 79.000 Machine Insurance 5.000 Depreciation 35,000 Rent EIR 000 Rates 6,000 You are also supplies with the following information: Dept.1 Total Area (Sq. MES.) 5,000 Total Machine Value 120,000 Dept.2 Sen. Serv. Total 4,000 500 400 9.900 25.000 45.000 250.000 60,000 90 214 120 9.000 6,000 15.000 Total number of employees Maintenance Hours provided by Serv.1 Labour hours Machine Hours 22,000 12,000 9,000 18.000 31.000 30.000 Note: Serv.2 area should be reapportioned on the basis of employee numbers and Serv.1 area should be reapportioned on the basis of maintenance hours provided. a) Draw up an overhead analysis statement, showing the allocation of overheads into the various departments. b) Reapportionment the service area costs into the production areas and arrive at total overheads costs for each production area. (5 Marks) c) Calculate appropriate absorption rates for production Dept.1 and production Dept.2 (4 Marks) d) You are given the following costs for products Golf X and Golf Y which are products produced by International Ltd and require manufacturing in production Dept.1 and production Dept 2. Golf Golf Y Direct Material Costs 600 900 Direct Labour Costs 250 350 Labour Hours required: Department 1 4 Department 2 Machine Hours required: Department 1 Department 2 4 7 9 7 8 3 S Calculate appropriate absorption rates for production Dept.1 and production Dept.2 Marks) a) You are given the following costs for products Golf X and Golf Y which are products produced by International Ltd and require manufacturing in production Dept. 1 and production Dept 2. Golf X Golf Y Direct Material Costs 600 900 Direct Labour Costs 250 350 Labour Hours required: Department 1 7 4 Department 2 9 7 Machine Hours required: Department 8 3 Department 2 4 5 Calculate the total production cost (material + labour+ overheads) for each of these products and calculate the selling price for each product given that Golf X is sold at a mark up of 17% on cost and Golf Y is sold at a mark up of 25% on cost