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REQUIRED Study the information given below and calculate the: Allocation rate for each of the production departments. Overheads applied to Product Flex. REQUIRED Franke Manufacturers
REQUIRED Study the information given below and calculate the: Allocation rate for each of the production departments. Overheads applied to Product Flex. REQUIRED Franke Manufacturers has gathered the following information with the objective of departmentalising its manufacturing overheads: Departments Machining Assembly Administration Recreation Direct labour hours 58 500 63 900 13 500 3375 Machine hours 8 550 7 650 3 600 585 Number of employees 189 243 36 18 Value of machinery R279 000 R252 000 R36 000 R135 000 Floor area 11 700 m2 9 900 m2 1 800 m2 900 m2 Materials usage R666 000 R261 000 R27 000 R90 000 The following are the budgeted manufacturing overheads for 2020: R Insurance: Buildings 97 200 Machinery 28 080 Cafeteria 42 282 105 300 85 050 41 760 13 122 18 225 Depreciation on machinery Maintenance of buildings Cost of inventory piling Protective clothing Heating of factory building Indirect materials: Machining Assembly Administration Recreation 6 579 17 694 4 500 2 799 Secondary allocation: The number of employees is used as a basis for the recreation department and machine hours as the basis for the administration department. Product Flex spends 10 labour hours in the Machining department and 6 labour hours in the Assembly department
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