QUESTION TWO The following information relates to MoMo Plc a manufacturing company that has two manufacturing departments and two service departments Manufacturing service TORI Dept. 2 29,200 Dept. 12.400 Dept. 2 12.050 86,850 Dept. 1 Allocated 32.400 Overheads General Overheads indirect Labour Heat & Uight Repairs & Maintenance Lameen SUICY Machine Depreciation Machine Insurance Total 32.000 48.500 34,700 5,100 10.400 The following additional information was extracted from the company's management accounting records Manufacturing Service Dept. 1 Dept. 2 Dept. 1 Dept. 2 Floor area sem 21.00 4,000 1,000 500 Direct labour hours 3U, U DULU Indirect labour hours 30,000 5,000 Direct laburrale per 12 hour(K) Number of staff 30 Machine Hours 2.500 25.000 Machine value (K) 40,000 200,000 10,000 Service Dept. overheads are to be re-apportioned as follows: Manufacturing Manufacturing 1 2 20% Service overheads Dept. 1 80% Service overeads Depi. JUZE 307 Data on two jobs being undertaken by the company is as follows: JOD ZJU JOD 490 Direct materials cost K240 K420 Machine hours 5 20 Direct labour hours Manulacturing Depl 40 25 Manicure Required: a) Prepare a statement showing the overhead cost for each department (include the basis of apportionment, where appropriate). (18 Marks) b) Calculate a suitable overhead absorption rate for each department using a basis that you deem suitable (6 Maris) c) Show the total cost of Job 230 and the total cost of Job 490. (11 Marks) Total: 35 Marks