REQUIRED:

$1\mathrm{.}1.$ Complete the primary allocation statement below.

$(7$ marks$)$

$\backslash$table$[[,$Basis,Total,PD A$,$PD B$,$PD C$,$SD X$,$SD Y$],[$Primary allocations:$],[$Indirect materials,Given,$765000,250000,402500,52500,10000,50000],[$Indirect labour,Given,$3040000,500000,500000,750000,550000,740000],[$Heating and lighting,Floor Area,$350000,?,?,105000,105000,?],[$Property tax,Floor Area,$400000,80000,40000,?,?,?],[$Insurance of machinery,Mach. value,$180000,?,60000,12000,6000,6000],[$Dep$.$ of machinery,Mach. value,$960000,512000,?,?,32000,32000],[$Insurance of buildings,Floor Area,$145000,?,?,43500,43500,14500],[\backslash$table$[[$Salaries of works$],[$management$]],\backslash$table$[[$No$.$ of$],[$employ$]],4600000,1380000,?,?,?,460000],[$Total primary allocations,,$10440000,2917000,2292000,2527000,1326500,1377500]]$

$1\mathrm{.}2.$ Complete the secondary allocation statement below $($where applicable, round of figures to two decimal places$).(6$ marks$)$

$\backslash$table$[[,$Production departments,Service departments$],[,$A$,$B$,$C$,$x$,$Y$],[$Total primary allocation, R$,2917000,2292000,2527000,1326500,1377500],[$Service department x$,?,?,?,?,?],[$Service department Y$,?,?,?,?,?],[$Service department x$,?,?,?,?,?],[$Service department Y$,?,?,?,?,?],[$Service department x$,?,?,?,?,?],[$Service department Y$,?,?,?,?,?],[$Service department x$,?,?,?,?,?],[$Service department Y$,?,?,?,?,?],[$Service department x$,?,?,?,?,?],[$Service department Y$,?,?,?,?,?],[$Total allocated overhead,?,?,?,$*,*]]$

$1\mathrm{.}3.$ Calculate the predetermined overhead absorption rates for the three production departments $(A,B$ and $C)$ of $CGH$ Manufacturing Enterprises for the forthcoming quarter $($round off answers to two decimal places$).$

$(3$ marks$)$

$1\mathrm{.}4.$ By citing the management accounting literature, state four $(4)$ advantages of predetermined overhead rate. $(4$ marks$)$