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Please show the working so i can further understand. It's not too urgent so no need to rush. Question 2 The following information relates to
Please show the working so i can further understand. It's not too urgent so no need to rush.
Question 2 The following information relates to Lookin ple a manufacturing company that has two manufacturing . departments and two service departments Manufacturing Manufacturing Service Dept. 1 Dept. 2 Dept. 1 ENE 32,400 29,200 12,400 Service Dept. 2 / 12,850 Total / Allocated Overheads 86,850 General Overheads Indirect Labour Heat & Light Repairs & Maintenance Canteen Subsidy Machine Depreciation Machine Insurance 32,000 48,600 34,700 5,100 10,400 6.250 223.900 The following additional information was extracted from the company's management accounting records. Manufacturing Manufacturing Service Service Dept. 1 Dept. 2 Dept. 1 Dept. 2 Floor area sq.m m 2.500 4,000 1,000 500 Direct labour hours 30,000 5.000 Indirect labour hours 30,000 5,000 Direct labour rate per hour EX 12 8 Number of staff 30 5 Machine hours 2,500 25,000 Machine value /E ! 40,000 200,000 10,000 Service Dept. overheads are to be re-apportioned as follows Service Dept. I overheads 20% 80% Service Dept. 2 overheads 50% 50% Data on two jobs being undertaken by the company is as follows: Job Eng2.30 / 240 5 Job Art490 E/E 420 20 Direct materials cost Machine hours Direct labour hours - Manufacturing Dept. 1 - Manufacturing Dept. 2 40 4 25 5 Required: a) Prepare a statement showing the overhead cost for each department (include the basis of apportionment, where appropriate) (10 Marks) b) Calculate a suitable overhead absorption rate for each department, using a basis that you deem suitable (4 Marks) c) Show the total cost of Job Eng 230 and the total cost of Job Art420, (6 Marks) Total: 20 MarksStep by Step Solution
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