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Question 1 Joy Ahead Limited has four (4) Production Departments and 2 Services Cost Department. Overhead incurred in the first two weeks of April 2016

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Question 1 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 A GH B GHC 60,000 70.000 85.000 65.000 35,000 42,500 23,200 18.500 D GHI GH 120,000 115,000 73.500 28,200 38,500 16,800 16,500 23.000 Indirect labour Indirect materials Depreciation Maintenance Rent Electricity Canteen Health Repairs to building 11 GHI GH GH 25.000 40.000 430,000 16.000 28.000 295.700 15,500 19,500 167,8001 16,500 14,500 112,200 45,000 38.000 126,000 45,000 28,000 B D Further information provided as follows: Basis of apportionment Production Department Service Department 111 Area occupied in sq. metres. 250 150 260 180 70 90 Number of employees 120 80 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 1 Service department 2 A 30% 25% B 40% 35% 20% 15% D 25% You are required to prepare an overhead analysis sheet showing the total overheads to be allocated to each production department. (12Marks) 10%

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