Reference no: EM132659940

Umbhaganga Limited produces and supplies Pizzas in Ngwavuma and surrounding areas. The company's costing clerk accumulated the following data for the past five months: Month Units produced Production overheads R January 2020 2 205 29 960 February 2020 2 130 29 040 March 2020 2 295 31 370 April 2020 3 720 40 965 May 2020 3 250 37 870 Additional information: The company has two production departments, Mixing and Cooking and two service departments Maintenance and Administrative service. The budgeted overhead costs for June 2020 amounts to R35 490 which have to be allocated as follows: Mixing 30% Cooking 50% Maintenance 10% Administrative service 10% A service is provided by Maintenance to other departments at the ratio of 4:5:1 to Mixing; Cooking and Administrative services, respectively. The administrative service department renders service to production departments only and the ratio of apportioning costs thereof to Mixing and Cooking is 3:2, respectively.

REQUIRED:

Calculate the following:

Question 1: Using the high-low method, the variable overhead cost per unit and the total fixed overhead costs per month.

Question 2: The total overhead to recover per production department in June 2019