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QUESTION 5 (20 Marks) City Leaving is the name of Hotel in Bloemfontein. CLH is a hotel of high standard in the country and provides
QUESTION 5 (20 Marks) City Leaving is the name of Hotel in Bloemfontein. CLH is a hotel of high standard in the country and provides you with the following information for the period ending 31 March 2020. The following additional information is available: Department Department Service Service Number of employees 220 2 100 m 1 900 m 830 m Value of machinery R380 000 R200 000 780 Machine hours Y 110 Z 70 190 Floor space 1 800 m R620 000 Material usage R400 000 600 500 500 370 250 130 700 The budgeted manufacturing overheads for 2020 are as follows: Building insurance R270 000 Cafeteria R81 000 Inventory piling R200 000 Maintenance of equipment R50 000 Indirect material: W R35 000 X R70 000 Y R40 000 Z R26 000 Required: 5.1 Calculate the primary allocation of overheads per department as well as the secondary allocation per production department. The number of employees is used as a basis for the service Z department and the material usage for the service Y department. (16) 5.2 Calculate the departmental MOH rate. MOH are allocated on the basis of machine hours in both production departments
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