Workshop-FOH Question 1 A company is preparing its production overhead budgets and determining the apportionment of these overheads to products. Cost centre expenses and related information have been budgeted as follows: Total Machine Machine Assembly Canteen Main- Shop A Shop B Indirect wages 78,560 8,586 9,190 15,674 29,650 15,460 Consumable materials (incl maintenance) (S) 16,900 6.400 8,700 1.200 600 Rent and rates 16,700 Building insurance 2,400 Power (S) 8,600 Heat and light 3,400 Depreciation of machinery (S) 40,200 Area (sq ft) 45,000 10,000 12,000 15,000 6,000 2,000 Value of machinery 402,000 201,000 179,000 22,000 Power usage-technical estimates 100 Direct labour (hours) 35,000 8,000 6.200 20,800 Machine usage (hours) 25,200 7,200 18,000 Required Determine budgeted overhead rates for each of the production departments, using bases of apportionment which you consider most appropriate from the information provided. Question 2 QB Limited is a manufacturer of plastic sheeting. It manufacturers only to customers specific requests and does not carry any stock of ready made sheeting. The only stocks it does hold in its storeroom are raw materials from which the sheeting is produced The company has two production departments: cutting and finishing. It also has two service departments: the stores and the canteen. The production departments and the stores and the canteen are located within a single building. The information provided below has been extracted from the company's budget for the next financial year, which ends on 30 June 20x9. overhead budget for the year ended 30 June 20x9 Factory rent (including storeroom and canteen) 220,000 Factory premises insurance (including storeroom and canteen) 11.000 Sundry expenses-cutting department 8,540 Sundry expenses finishing department 4,150 Machinery insurance 3.900 Depreciation of factory plant and machinery 24.000 Finishing department materials 10,000