QUESTIONCapeTown$-$based manufacturing firn, CGH Manufacturing Enterprises $($CGHME$),$ has three production departmentsand C$)$ and the two service departmontAs part of the budgeting process, a senior cost accountantg annual overhead costsemployed by CGHME has gathered the Kand Y$)$Indirect materialsProduction department AProduction department BProduction department CService department XService department YIndirect labour.Production department AProduction department EProduction department CService department XService department YHeating and lightingProperty taxInsurance of machineryDepreciation of machiner$|$ Insurance of buildings$|$ Salaries of works managementThe following information is also available:Production department AProduction departmentProduction departmentService department $>$Service department Yfollow$|$Carrying value ofmachinery, R$|$ Secondary allocation:Percentage of service department X toPercentage of service department Y toR$25000040250052500100005000050000500000750\mathrm{.}0005500007400003500004000001800009600001450004600000400000025000005000002500002500007500000|$ Floor areaOccupied $($m$?)50002500$A$207500407500250025000$B$4020$Numberof Machine hoursemployees$16100150$As an accounting interm in the office of the senior cost accountant, you have been asked to prepare an overhead allocationstatement $($using traditional costing$).$ You have been asked to use the repeated distribution method to prepare thesecondary allocation of the overheads of the two service departments $($X and Y$)$ to the three production departments $($A$,$B and C$)$ according to the following percentages:$5003020$The three production departments $($A$,$ B and C$)$ absorb overheads on machine hour basis.$(20$ Marks$)$X$1000000208000002690085000010$REQUIRED:$1\mathrm{.}1.$Complete the prmary allocation statement below.Primary allocations:Indirect materialsIndirect labourHealing and lightingFloor AreaProperty taxFloor AreaInsurance of machineryMach valueDep. of machineryInsurance of buildingsSalaries of worksmanagementTotal primary allocationsGlvenGigBasisService department X$|$Total primary allocation, RService department XService department YService department YMach. valueFloor AreaNo. ofemployService departmentService department $\backslash$Service department XService departmentService department XService departmentYTotalTotal allocated overhead$7650003040000$o$|350000400000180000$PD A$460000010440000250000500000960000512000145000|80000$A$2917000$PO B$402500$s$000004000060000$B$2292000$Production departmentsPD CSD X$52500100007500005500001200012.$Complete the secondary allocation statement below $($where apolicable, round of flqyres to two decimal places$)$marks$)2527000?7$ marks$)?6000320001380000291700022920002527000132650013775002435$s$004350014500$XSD Y$500007400006000320001326500460000$Service departments$13$T$15001\mathrm{.}3.$Calculate the predetermined overhead absorption rates for the three production departments $($A$,$ B and C$)$ of CGHManufacturing Enterprises for the forthcoming quarter $($round off answers to two decimal places$)(3$ marks$)14.$By citing the management acounting iterature, state four $(4)$ advantages of predetemined ovetead rate. $(4$ mats$)105000105000$