Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please show the calculation steps too Exercise 4 Rainbow Limited manufactures uniforms for primary and high schools in Limpopo province, in two production departments: Cutting,

Please show the calculation steps too
image text in transcribed
Exercise 4 Rainbow Limited manufactures uniforms for primary and high schools in Limpopo province, in two production departments: Cutting, and Sewing and Buttoning, and the service departments: Administration and Marketing provide support, for example maintenance of equipment, to the production departments. The following additional information is available: Administration Marketing Cutting Sewing and Buttoning Number of employees 190 150 Floor space 12 450 m 2 050 m Value of machinery R700 000 R500 000 Kilowatt hours 1 370 1 200 Labour hours 6 000 4000 Machine hours 4100 3.000 100 1 500 m R350 000 600 550 370 80 1 230 m R250 000 400 200 150 000 The budgeted manufacturing overheads for 2013 are as follows: Rent of building R980 500 Electricity R79 Depreciation of machinery (allocation based on value of machinery) R190 000 Salaries of supervisors R400 800 Indirect material: Cutting R93 000 Sewing and Buttoning R69 000 Administration R34 00 0 Marketing 000 R28 Required: 4.1 Calculate the primary allocation of overheads per department as well as the secondary allocation per production department. The secondary allocation, machine value, is used as a basis for the marketing, and machine hours as a basis for the administration department. 4.2 Calculate the departmental MOH rate. MOH are allocated on the basis of labour hours in both production departments

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Tax Accounting

Authors: Greg Shields

1st Edition

163716128X, 978-1637161289

More Books

Students also viewed these Accounting questions

Question

How will you communicate keep everyone in the loop?

Answered: 1 week ago

Question

=+5. How they might use the product (usage effect).

Answered: 1 week ago