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Kamara Limited operates five departments of which Department 1, 2 & 3 are production departments and Departments 4 and 5 being stores and maintenance departments respectively. The actual cost incurred for the year ended 31st December 2019 were:

Rent	90,000
Insurance of Building	75,000
Power	70,000
Supervision	30,000
Machine Depreciation	44,000
Canteen services	54,000
Light and Heat	50,000

	DEPARTMENTS
	Machining	Assembling	Finishing	Stores	Maintenance
Indirect Materials	40,000	26,000	43,000	7,000	20,000
Indirect Wages	25,000	50,000	71,000	45,000	30,000

The following information is also available for the 5 departments.

	DEPARTMENTS
	Machining	Assembling	Finishing	Stores	Maintenance
Area Occupied(sqft)	600	300	150	60	90
Cost of machines	120000	80000	40000	-	10000
Horse Power	500	350	1500	400	250
No. of Mat Requisition	125	75	50	-	-
No. of employees	40	50	10	20	30
Maintenance Hours	300	500	200	-	-

Direct Labour Hours	8000	30000	4000	2000	1000
Machine Working Hours	40000	10000	30000	-	20000

The company produces two products X and Y, and the number of hours spent on the production of each unit of X and Y are:

	X	Y
Machining: Direct Labour Hours	95	65
Machine Hours	250	160
Assembling: Direct Labour Hours	225	140
Machine Hours	89	50
Finishing: Direct Labour Hours	70	60
Machine Hours	275	120

You are required to:

1. Prepare the overheads analysis sheet showing the apportionment of overheads to the department and the re-distribution of the service departments overhead to the production departments.
2. Calculate for each production department the most appropriate overhead absorption rate given reasons for your choices.
3. Calculate the overheads chargeable to each unit of the products X and Y produced.

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