Reference no: EM13590438

The information given below relates to the forthcoming period for a manufacturers'' operation. There are four cost centres for which two are involved in production and two are services. <br/> <br/> Production departments service departments <br/> total A B CANTEEN STORES <br/>Allocated 141000 43000 60000 17000 21000 <br/>other cost; <br/>Rent&rates 9000 <br/>building- <br/>insurance 7000 <br/>Electricity 14000 <br/>plant- <br/>depreciation 57000 <br/>plant- <br/>insurance 17000 <br/>TOTAL 245 000 <br/> <br/>Additional information <br/>Area occupied (sq.m) 15200 11400 3800 7600 <br/>plant at cost 3900 1800 - 300 <br/>number of employees 1200 600 60 200 <br/>machine hours 54400 1600 - - <br/>direct labour hours 13600 36000 - - <br/>no.of stores requisition 5600 700 700 - <br/> <br/>Required <br/> <br/>a. Prepare a schedule in which you apportion the overhead costs to production departments using repeated distribution method or algebraic method. The bases of apportioning canteen and stores overhead cost are number of employees and number of stores requisitions respectively. <br/> <br/>b. Calculate production overhead absorption rates for departments A and B using machine hours for department A and direct labour hours for department B <br/> <br/>