Simasiku Ltd manufactures components for bicycles. The factory, in which the compati undertakes af its production, has two production departments namely Cutting and Shaping and twa service departments (Stures and Maintenance). The information below was extracted from the company's budget for its financial year ended 31 March 2021 Direct Costs: Cutting Department Shaping Department K'000 2868 420 Allocated Overhead Costs: Cutting Department (Cutting) Shaping Department (Shaping) Stores Department Stores Maintenance Department (Mainland) KDOO 20 32 7 5.6 Other Production Overheads: Factory rent Factory building insurance Plant machinery insurance Plant & machinery depredation Cartean subidy KOOO 1,050 140 117 300 The following additional information is also provided: Basis Cutting Shaping Poor area (square metres) 36,000 24,000 Value of plants Machinery 600,000 100,000 Number of stores requisitions 2,000 1,000 Maintenance houts required 5,400 4,000 Number of employees 68 120 Machine hours 24,000 4,400 Labour hours 18,000 30,000 Stores Maintenance 5,000 4,000 50,000 30,000 600 The annual demand for the components is 360,000 Required: (a]Prepare an overtrend aralysa sheet based on the above information. You must clearly state the basis used for any apportionments. (11 marks) (b)Calculate the most appropriate overhead rate for each production department (4 mans) (c) The partial cost per each component is as follows: Costitem Kunt Direct material 50 Direct labour 27 Calculate the total cost per component. (2 mares) Total 17 marks) Simasiku Ltd manufactures components for bicycles. The factory, in which the compati undertakes af its production, has two production departments namely Cutting and Shaping and twa service departments (Stures and Maintenance). The information below was extracted from the company's budget for its financial year ended 31 March 2021 Direct Costs: Cutting Department Shaping Department K'000 2868 420 Allocated Overhead Costs: Cutting Department (Cutting) Shaping Department (Shaping) Stores Department Stores Maintenance Department (Mainland) KDOO 20 32 7 5.6 Other Production Overheads: Factory rent Factory building insurance Plant machinery insurance Plant & machinery depredation Cartean subidy KOOO 1,050 140 117 300 The following additional information is also provided: Basis Cutting Shaping Poor area (square metres) 36,000 24,000 Value of plants Machinery 600,000 100,000 Number of stores requisitions 2,000 1,000 Maintenance houts required 5,400 4,000 Number of employees 68 120 Machine hours 24,000 4,400 Labour hours 18,000 30,000 Stores Maintenance 5,000 4,000 50,000 30,000 600 The annual demand for the components is 360,000 Required: (a]Prepare an overtrend aralysa sheet based on the above information. You must clearly state the basis used for any apportionments. (11 marks) (b)Calculate the most appropriate overhead rate for each production department (4 mans) (c) The partial cost per each component is as follows: Costitem Kunt Direct material 50 Direct labour 27 Calculate the total cost per component. (2 mares) Total 17 marks)