QUESTION 4 25 MARKS The following information relates to Zimbos Cc a manufacturing company tha t has two manufacturing departments and two service departments. tables as well as chairs. The company manufactures Total Manufacturing Manufacturing Service Service Dept. 1 (N) Dept. 2 (N$)Dept. 1 Dept. 2 N$ (NS)(NS) 850 86 850 Allocated Overhead General Overheads Indirect Labour Heat & Light Repairs Maintenance 32 400 29 200 12 4001 32 000 48 600 34 700 Canteen Subsidy Machine 5 100 10 400 Depreciation Machine Insurance 6 250 223 900 Additional information: The following additional information was extracted from the company's management accounting records: Manufacturing Manufacturing Service 1 000 Dept. 1Dept. 2 Dept. 1 2 500 Service Dept. 2-0 500 Floor area sq. m Direct labour hours Indirect labour hours Direct labour rate per hour Number of staff Machine hours Machine value 5 000 18 30 000 30 2 500 40 000 200 000 10 000 Service overheads are to be re-apportioned as follows: Dept. Page 13 of 14 Service Dept.1 overheads Service Dept. 2 overheads 20% 80% 50% 50% Data on producing Tables and Chairs by the company is as fol lows: Table Job Chair Job Direct materials cost Machine hours Machine hours Direct labour hours: Manufacturing Dept. 1 Manufacturing Dept. 2 N$ 240 5 40 N$ 420 20 25 4 MARKS REQUIRED: 13 Prepare a statement showing the overhead cost for each1 4.1 department (include the basis of apportionment, where appropriate). Calculate a suitable overhead absorption rate for each department, using a basis that you deem suitable 4.2 Show the total cost of producing Tables and the total cost of producing 4.3 Chairs 25 TOTAL MARKS FOR QUESTION 4 Assignment 2 will be available soon Good luck