please Answer, its Urgent. Alloy Plc manufactures 3 products in two production departments, Machine shop...
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please Answer, its Urgent.
Alloy Plc manufactures 3 products in two production departments, Machine shop and Fitting section. It also has two service departments, a Canteen and a Machine maintenance section. Below are production and manufacturing data for the 3 products:
Product X
Product Y
Product Z
Production
4,200 units
6,900units
1,700 units
Direct materials (N per unit)
11
14
17
Labour:
Machine shop ((N per unit)
12
4
2
Fitting section (N per unit)
12
3
21
Machine hours per unit (Hours per unit)
6
3
4
Overheads
Machine shop
Fitting
Canteen
Maintenance
Book value of equipment
N150,000
N75,000
N30,000
N45,000
No. of employees
18
14
4
4
Floor space (m2)
3,600
1,400
1,000
800
Allocated overheads
N27,660
N19,470
N16,600
N26,650
Other overheads include:
Rent and rates N10,000 Heat and light N7,000
Insurance of Equipment N5,000 Depreciation N20,000
Canteen overhead expenses are apportioned to all the other units in the ratio of the number of employees while Maintenance section overheads are apportioned 70% and 30% to Machine shop and Fitting section respectively. Required:
Prepare a statement showing the apportionment of overheads
Calculate the overhead absorption rates to products for total Machine shop overheads and Fitting section overhead using number of units produced
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