Question 2 A corupany has three production departments, A, B and C, and a service department, S. The overhead costs incurred during a particular for week costing period were: Indirect wages and salaries 5 5 Dept A Dept B Dept Depes 4.000 3.000 3.500 2.500 13,000 780 600 600 National insurance Rent and rates Repairs to plant and machinery Depreciation of plant and machinery Heating and lighting Power Insurance of plant and machinery 450 300 560 350 Medical costs 20 The following information is also available: Dept A 10.000 20 Area in square feet Number of employees Book value of plant and machine Horse power of machines Dept B 8.000 12 $12.000 95 Dept 7.000 15 $6,000 Depts 5.000 13 $2,000 10 $10.000 I 120 55 Rewired A Carry out the allocation and apportionment of overhead to the four departments. (40 ark Question 1 The following costs were reported by ABC Company. Period Units produced Costs ($) 1 2 3 4 5 680 600 800 840 720 4 520 4 320 4 600 4800 4532 Use the High-low Method to calculate the fixed costs per month and the variable costs per unit (5 marks) b. The following costs were observed over several periods in a manufacturing company. Production level (units) Total costs (5) Period 1 8 58 Period 2 7 64 Period 3 9 82 Period 4 74 Period 5 90 Period 6 10 96 9 11 Required Using the Least Square Method of linear regression, determine the variable cost per units and total fixed cost total cost at an estimated production level of 12 units and 14 units (1 marks) (4 marks (Total 25 marks