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QUESTION 1 ( 2 0 Marks ) A Cape Town - based manufacturing firm, CGH Manufacturing Enterprises ( CGHME ) , has three production departments

QUESTION 1
(20 Marks)
A Cape Town-based manufacturing firm, CGH Manufacturing Enterprises (CGHME), has three production departments (A, B and C) and the two service departments (x and Y). As part of the budgeting process, a senior cost accountant employed by CGHME has gathered the following annual overhead costs
\table[[,R],[Indirect materials:,],[Production department A,250000],[Production department B,402500],[Production department C,52500],[Service department X,10000],[Service department Y,50000],[Indirect labour:,],[Production department A,500000],[Production department B,500000],[Production department C,750000],[Service department X,550000],[Service department Y,740000],[Heating and lighting,350000],[Property tax,400000],[Insurance of machinery,180000],[Depreciation of machinery,960000],[Insurance of buildings,145000],[Salaries of works management,4600000]]
The following information is also available:
\table[[,\table[[Carrying value of],[machinery, R]],\table[[Floor area],[occupied (m2)
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