REQUIRED Study the information provided below and calculate the following for 2018:

1.1 Overhead allocation rates of each of the two production departments. (16 marks)

1.2 Overheads applied to each unit of the product. (4 marks)

The secondary apportionment of the service department takes place according to machine hours. The product spends 20 labour hours in the Department A and 10 labour hours in the Department B. Overhead allocation rates are based on labour hours.

Departments Machinin Assembly Administration 4 500 Recreation 1 125 Direct labour hours 19 500 21 300 195 Machine hours 2 850 2 550 1200 12 Number of employees 63 81 R12 000 R45 000 Value of machinery R93 000 R84 000 Floor area 3 900 m2 3 300 m2 600 m2 300 m2 R30 000 R9 000 R222 000 R87 000 Materials usage The following are the budgeted manufacturing overheads for 2017 Insurance Buildings 32 400 9 360 Machinery Cafeteria 14 094 Depreciation on machinery 35 100 Maintenance of buildings 28 350 13 920 Cost of inventory pling Protective clothing 4 374 Heating of factory building 6 075 Indirect materials 2 193 Machining 5 898 Assembly 1 500 Administration 933 Recreation Departments Machinin Assembly Administration 4 500 Recreation 1 125 Direct labour hours 19 500 21 300 195 Machine hours 2 850 2 550 1200 12 Number of employees 63 81 R12 000 R45 000 Value of machinery R93 000 R84 000 Floor area 3 900 m2 3 300 m2 600 m2 300 m2 R30 000 R9 000 R222 000 R87 000 Materials usage The following are the budgeted manufacturing overheads for 2017 Insurance Buildings 32 400 9 360 Machinery Cafeteria 14 094 Depreciation on machinery 35 100 Maintenance of buildings 28 350 13 920 Cost of inventory pling Protective clothing 4 374 Heating of factory building 6 075 Indirect materials 2 193 Machining 5 898 Assembly 1 500 Administration 933 Recreation