Question 5 A factory has two production departments, Departments A and B, and two service departments. Canteen and Quailty Control. The following are overheads incurred for a particular period. N Annual Factory Rent 34,000,000 Depreciation of Plant & Equipment 40,000,000 Electricity and power 28.000.000 Insurance - Plant and Equipment 12,000,000 Insurance - Building 19,200,000 Information on the departments are given below: Dept. A Dept. B Canteen Quality Control Area (m) 10.000 6.000 3.000 1,000 No. of 240 120 20 20 employees Kw 12.000 8.000 3,000 1.000 Plant & N110.000.000 N40,000,000 N10,000,000 Equipment Units 36.000 15,000 Produced Total Quality Control overheads are apportioned 60% and 40% to Dept. A and Dept. B respectively. Required: a) Prepare the overhead apportionment statement 18.5 marks] b) Differentiate between a production centre and a service centre [4 marks] Question 6 A fim with two departments has 20 employees in Department A and 10 employees in B. The following information is available for the departments: Department A Department B Annual salary per employee N4,500,000 N5,500,000 Normal work days per week 5 Normal Work hours per day 8 Annual leave (weeks) 3 4 Public holidays/off days 11 8 Sick/compassionate leave 6 Casual leave 5 Additional information: a) Fringe benefits for all departments is 15% of annual salary b) Department B employees earn additional bonus of 5% of annual salary Required: Calculate the average labour cost per hour of work for each department H. Briefly explain the two (2) classes of labour records Discuss four (4) factors that affect the amount employees are paid (4 marks] ONN [6.5 marks] (2 marks]