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Intermediate: Overhead analysis shoot and calculation of overhead rates. Dunstan Ltd manufactures tents and sleeping bags in three separate production departments. The principal manufacturing processes consist of cutting material in the pattern cutting room and sewing the material in either the tent or the sleeping bag departments.
For the year to 31 July cost centre expenses and other relevant information are budgeted as follows:
Taal (t)
Cuttmg room (I)
Tents (L)
Raw Main-
Sleeping =renal Canteen renal bags (L) stores (L) (t) (L)
Indirect
wages
147200
8400
19500
20100
41200
15000
45000
Consumable matenals
54600
5300
4100
2300
- 18700
24200
Plant
damnation
84200
31200
17500
24600
2500
3400
5000
Power
31700
Heat and
Wit
43800
Rent and rates
14400
Budding insurance
13500
Root area (SQ. It)
30000
8000
10000
7000
1500
1000
Estimated
Weer usage (V
100
17
38
32
3
8
2
Direct
labour (hours)
112000
48000
57000
-
Machine usage (hours)
87000
2000
40000
Value of
raw material issues (%)
62.5
12.5
Question 1: Prepare in columnar form a statement calculating the overhead absorption rates for each machine hour and each direct labour hour for each of the three production units. You should use bases of apportionment and absorption which you consider most appropriate, and the bases used should be clearly indicated in your statement. Please make the simple table and write down all your actions with explanations. needs to show all the calculations
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