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ACC1102 (F) / Page 4 of 6 Question 4 IKAR, a small home furniture factory,...

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Accounting

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ACC1102 (F) / Page 4 of 6 Question 4 IKAR, a small home furniture factory, operates with THREE production departments: Assembly, Polishing, and Packing and TWO service departments: Stores and Maintenance. For the forthcoming period, the total budgeted overhead costs are as follows: Allocated costs: Departments Indirect materials (RM) Indirect labor (RM) Assembly Polishing Packing Stores Maintenance 3,800 4,630 2,120 900 120 9,900 8,180 6,200 4,760 5,800 The following factory overheads were obtained from the accounts relating to the period: RM Heating and lighting Rent and rate Production supervision Plant depreciation Lubricant Office depreciation Direct labour Direct materials 20,180 36,000 56.000 29,000 5,830 7,600 15.000 21,000 The following information is also available: Department Assembly Polishing Packing Stores Maintenance 6 1350 4 350 Number of Employees Floor Area (Sq, metr.) Machine bours Direct labour hours Plant's values ("OOORM) 20 1150 1200 120 210 12 1800 2140 30 190 8 1250 60 SO 50 13 17 Required: Prepare an overhead analysis statement showing the allocation and apportionment of overheads to the departments (Total 25 marks)

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