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ACCOUNTING SEMESTER'S ASSIGNMENT COURSE CODE:ACT 309 ISSUE DATES:22ND & 230 FEBRUARY, 2021. SUBMISSION DATE: 17 & 2ND MARCH 2021. DISCUSSION DATES: 8 & 9 MARCH, 2021. CAUTION: EVERY GROUP MEMBER SHOULD PARTICIPATE IN THE WORK GROUP LEARDERS SHOULD NOT PERMIT ANY GROUP MEMBER WHO DID NOT PARTICIPATE IN THE WORK TO SIGN. THANK YOU Prepare a flexible budget of Makutu Company Limited for the year 2021 for the overhead expenses of its production department at the activity levels of 70%, 90%, 110% and 130% using the information below: a) The direct labour hourly rate is expected to be GH15.00 b) 100% activity represents 90,000 direct labour hour. c) Variable costs are as follows: Indirect labour -GH43.00 per direct labour hour Consumable Supplies - GH1.50 per direct labour hour Canteen and other welfare -8% of direct and indirect labour costs d) Semi-variable costs are expected to correlate with the direct labour hours in the same manner as for the last five (5) years which were Year Direct Labour Hour (DLH) Semi-variable cost (GHC) 2016 64,000 83,200.00 2017 59,000 79,200.00 2018 53,000 74,400.00 2019 49,000 71,200.00 2020 40,000 (estimated) 64,000.00 (estimated) e) Fixed costs are: GH Insurance 16,000.00 Management salaries 100,000.00 Maintenance 40,000.00 Rates 60,000.00 Depreciation 72,000.00 1) Ignore inflation II) Assuming that 57,000 and 65,000 direct labour hours (DLI) are worked, calculate the budgeted cost allowance for 2021

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