Required: Answers for a&b please!

QUESTION 2 [25] Western Moon Hotel uses a cost accounting system. There are five sections that are used in the hotel: Amenities, Catering and Housekeeping that deal directly with customers, with Maintenance and Administration being internal services. The following overhead details have been estimated for the next period: Amenities 10 000 Catering 80 000 Housekeeping Maintenance 40 000 40 000 Admin 10 000 Total 2 400 000 600 000 600 000 150 000 150 000 Consumable materials Staff costs Rent and rates Content insurance Heating and lighting Depreciation ? 2 000 000 170 000 150 000 340 000 The following information is also available: Amenities 20 000 Catering 3 000 Housekeeping 75 000 Maintenance 1 000 Admin 1 000 500 000 150 000 100 000 50 000 50 000 Floor area (m) Value of equipment Number of employees 40 30 40 10 15 Maintenance works 80% for Amenities, 10% for Catering and 10% for Housekeeping. Admin works for 20% for Amenities, 40% for Catering and 40% for Housekeeping. Required: a) Calculate the primary overhead allocation rates as well as the secondary allocation for all the departments. (19) b) Calculate the predetermined overhead rate for each of the following departments: i.Amenities using number of employees ii. Catering using value of equipment iii. Housekeeping using floor area (6)