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Question 2(a) Joy Ahead Limited has four (4) Production Departments and 2 Services Cost Department. Overhead incurred in the first two weeks of April 2016 were: Overhead Production Departments Service Departments Total B D 1 II GH GH GH GH GHE GH GH Indirect labour 60,000 70.000 120,000 115,00 25,000 40.000 430,000 Indirect materials 85,000 65,000 73,500 28.200 16,000 28.000 295,700 Depreciation 35,000 42,500 38,500 16,800 15,500 19.500 167.800 Maintenance 23.200 18,500 16,500 23,000 16,500 14,500 112,200 Rent 45.000 Electricity 38,000 Canteen 126,000 Health 45,000 Repairs to building 28.000 0 150 70 120 80 Further information provided as follows: Basis of apportionment Production Department Service Department A B D 1 Area occupied in sq. metres. 250 260 180 90 Number of employees 95 84 56 65 Direct labour 10,000 8.000 9.000 12.000 Service department overheads are absorbed by the production departments in the following proportions: Production departments Service department Service department 2 A 30% 25% B 40% 35% 20% 15% D 10% 25% You are required to prepare an overhead analysis sheet showing the total overheads to be allocated to each production department. (SMarks) Page 2 of 4 Examiner Daboug Bright Christopher