QUESTION 2.2 Grimsell Limited budgeted the following figures for 1928: Department 1 2 R320 000 R122 500 R504 000 R525 000 Diract labour Factory overheads Direct labour hours Machine hours 58 000 4000 21 000 75 000 Overheads are apportioned to production by using both direct labour hours and machine hours as basis. The budgeted factory overheads have to be apportioned equally in relation to each of the two bases. At the end of March 19x8 the cost records for Task 24 reflected the following: Material Direct labour Department 1 2 R 80 000 R 40 000 R60 000 R 25 000 Direct labour hours Machine hours 9 000 800 5 000 18 000 The task is classified as complete. The profit that was realised from the task amounted to 50% of the total manufacturing and administration costs (administration costs amounted to R5 000). At the end of 1988 the actual hours in respect of the various departments were as follows: Direct labour hours Machine hours Department 1 2 60 000 20 000 3500 76 000 The actual costs for 19x8 were as follows: Direct labour Factory overheads Department 1 2 330 000 120 000 505 000 540 000 YOU ARE REQUIRED TO: a) b) c) calculate the allocation rates; calculate the selling price for Task 24 calculate the over/underapplied overheads for Departments 1 and 2 for 19x8