re-allocate the service centre to the production centres on the basis of budgeted direct material cost

J TOTAL CANTEEN N$ 1 December 2017 is as follows: CUTTING N$ COOKING N$ 120 000 140 000 24 000 32 000 290 000 76 000 30 000 20 000 Indirect Labour Indirect materials Heating/Lighting Depreciation Supervision Power 24 000 60 000 48 000 40 000 The following information is also available: CUTTING CANTEEN 20 000 COOKING 24 000 240 000 60 6 000 20 000 Floor area (sq metres) Value of Building N$ Number of employees Kilowatt hours 300 000 80 10 9 000 8 000 1000 30 000 100 000 50 0000 Direct materials (N$) Cubic capacity Maintenance hours 50 000 42 000 38 000 8 000 6 000 Direct labour hours 12 640 8 400 Machine hours 15 700 REQUIRED: 1. Prepare a statement showing the allocation of each overhead item between three departments. Show the basis of apportionment for each overhead. (16) 2. Re-allocate the service centres to the production centres on the basis of budgeted direct material cos (4) 3.Calculate the labour hour overhead absorption rate for the Cutting Department and a machine hou overhead absorption rate for the Cooking Department. 4.The actual figures of the period: Cutting Department: Factory overheads N$310 000; 14 000 labour hours. Cooking Department: Factory overheads N$312 000; 20 000 machine hours. Compute the overheads under/over absorbed for cost centers cutting and cooking