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qustion 1.2.1 and 1.2.2 and show the working . MTC - Wear Your... 09:13 Question 1.2 (14 marks) Bigman Limited needs to allocate and apportion

qustion 1.2.1 and 1.2.2 and show the working image text in transcribed
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. MTC - Wear Your... 09:13 Question 1.2 (14 marks) Bigman Limited needs to allocate and apportion their overhead costs for the next accounting period. They asked you as a cost accounting expert to assist them with this task. They have given you the following information to work with Budgeted Values Direct material NS550 625 Direct Inbour N5413 867 Indirect material Department A NS16 850 Indirect material: Department B N56 890 Indirect labour: Administration department N7000 Indirect labour: Stores receiving department NS5 000 Indirect labour Department A N5 16 500 Indirect labour: Department B NS6 000 Factory Rent N5787 500 Insurance on machinery N$ 149 000 Factory electricity NS385 000 Cafeteria coses NS23 400 The following information is also available on the activities used within each department Production Service Department Department Stores Cafeteria B receiving Floor area (m) 1000 1 250 750 150 Book Value of Machinery N5110 000 N$175 000 N$4 000 NS9 000 Kilowatt usage 46 000 143 000 1 300 2 200 Direct labour hours 1400 1 920 680 0 Machine hours 1400 2 840 0 0 Number of word 10 12 4 2 Material usage (kg) 32 745 20 000 O Secondary allocation should be done on the following boses Cafeteria: Number of workers Stores receiving Material usage Secondary apportionment is done applying the step method. Department Ais tabour intensive while Department B is capital intensive O 20 Pape 20 of 25 > Mark Requirement Sub- total Total Assist Bigman Ltd to determine the primary and secondary allocation 1.2.1 and apportionment of manufacturing overhead costs to the different 10 10 departments. 1.2.2 Calculate the predetermined overhead rate applicable to Department 14 A and B Note: Show all the necessary workings or steps that are required to reach the answer. Marks are available for these Total 14 4

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