the company specialises in making products to customers$$ order$-$ for local

organisations.

There are two production departments: Machining and Finishing and two service departments:

Technical support and Personnel.

The following information is available.

Overhead Already Allocated

Machining $()$ Finishing $()$ Technical Support $()$ Personnel $()$

Allocated Overhead $17,53011,3605,0206,300$

Budgeted Overhead Costs for August $2023$ to be Apportioned

Category Amount $()$

Electricity and Power $20,500$

Insurance $-$ Machinery $7,500$

Insurance $-$ Buildings $11,880$

Information for Apportionment and Reallocation of Overheads

Machining Finishing Technical Support Personnel

Floor Area $($square metres$)9070155$

Power $($kilowatt$-$hours$)1203204020$

Cost of Machinery $()105,00030,00012,0003,000$

Number of Employees $20155--$

Technical Support Hours $40060----$

Additional information

The following budgeted information is also available for August $2023.$

Machining direct machine hours $3200$

Finishing direct labour hours $5500$

Required:

$($a$)$ Apportion unallocated overheads, reapportion the service departments costs to the production

departments and calculate the total overheads of each production departments.

$($b$)$ Calculate the overhead recovery rate for each production department using an appropriate

basis

Additional information

The company received an order for to be produced in August $2023.$

It was budgeted that this order would require the following:

Direct material $1400.$ Direct materials per order will be charged to customers with $10\%$

profit

Direct labour rate per hour: Machining department $5$ per hour

Finishing department $5\mathrm{.}5$ per hour

Direct labour hours: Machining department $12\mathrm{.}50$ machine hours

Finishing department $6$ labour hours

The company requires a profit mark$-$up of $20\%$ on all orders.

Required:

$($c$)$ Calculate the Quotation price on this order

Ps: Show the necessary working