Answered step by step
Verified Expert Solution
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 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
Please show the calculation steps too
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started