QUESTION 1 KOKO LTD operates five departments of which Department 1, 2 & 3 are production departments and Departments 4 and 5 being stores and maintenance departments respectively. The actual cost incurred for the year ended 31st December 2019 were: GHS Rent 820,000 Insurance of Building 340,000 Power 540,000 Supervision 210,000 Machine Depreciation 440,000 Light and Heat 500,000 DEPARTMENTS Machining Assembling Finishing Stores Maintenance Indirect Materials 200,000 150,000 240,000 60,000 100,000 Indirect Wages 350,000 500,000 620,000 160,000 200,000 The following information is also available for the 5 departments. Area Occupied (sq.ft) Cost of machines (GHS) Horse Power No. of Mat Requisition Maintenance Hours Direct Labour Hours Machine Working Hours DEPARTMENTS Machining Assembling Finishing Stores Maintenance 600 300 150 60 90 120000 80000 40000 10000 500 350 1500 400 250 55 80 25 400 560 40 75000 300.000 18,000 9,000 380,000 101,000 280,000 15,000 48,000 The company produces two products KB and KT, and the number of hours spent on the production of each unit of KB and GH are: Machining: Direct Labour Hours Machine Hours Assembling: Direct Labour Hours Machine Hours Finishing: Direct Labour Hours Machine Hours KB 105 200 200 55 60 205 KT 50 180 155 40 80 156 Required: a. Prepare the overheads analysis sheet showing the apportionment of overheads to the department and the re-distribution of the service departments overhead to the production departments. (14 marks) b. Calculate for each production department the most appropriate overhead absorption rate given reasons for your choices. (3 marks) c. Calculate the overheads chargeable to each unit of the products KB and KT produced. (3 marks) (Total 20 marks)