SECTION A Answer ALL the questions in this section. Question 1 [100 MARKS] (20 Marks) Use the information provided below to answer the following questions: 1.1 Prepare the Overhead Allocation Statement that reflects the primary and secondary allocation of (12 marks) overheads. 1.2 Calculate the allocation rate of each of the production departments. Express the answers to the nearest cent. (4 marks) 1.3 Calculate the overheads applied to each unit of the product. Express the answers to the nearest cent. (4 marks) INFORMATION Kansas Ltd gathered the following statistics in order to allocate the overheads among the different departments for 2022: Number of employees Direct labour hours Production Department A Production Department B Service Department M 600 360 240 12 000 8 000 4000 Plant and equipment at cost R300 000 R200 000 R100 000 Materials usage R360 000 R180 000 R60 000 Machine hours 3.000 1500 500 Floor area in square metres 4 000 4 000 2000 The budgeted overheads for 2022 are as follows: Overheads Rent expense Depreciation on plant and equipment Utilities Uniforms for employees Rest room Insurance: Buildings Plant and equipment R 120.000 60 000 72 000 36 000 12 000 24 000 30 000 The product spends 5 labour hours in Production Department A and 2.5 labour hours in Production Department B. The overhead allocation rates are based on labour hours, while the secondary apportionment of the service department takes place according to machine hours.