please Answer, its Urgent. Alloy Plc manufactures 3 products in two production departments, Machine shop...

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Accounting

please Answer, its Urgent.

Alloy Plc manufactures 3 products in two production departments, Machine shop and Fitting section. It also has two service departments, a Canteen and a Machine maintenance section. Below are production and manufacturing data for the 3 products:

Product X

Product Y

Product Z

Production

4,200 units

6,900units

1,700 units

Direct materials (N per unit)

11

14

17

Labour:

Machine shop ((N per unit)

12

4

2

Fitting section (N per unit)

12

3

21

Machine hours per unit (Hours per unit)

6

3

4

Overheads

Machine shop

Fitting

Canteen

Maintenance

Book value of equipment

N150,000

N75,000

N30,000

N45,000

No. of employees

18

14

4

4

Floor space (m2)

3,600

1,400

1,000

800

Allocated overheads

N27,660

N19,470

N16,600

N26,650

Other overheads include:

Rent and rates N10,000 Heat and light N7,000

Insurance of Equipment N5,000 Depreciation N20,000

Canteen overhead expenses are apportioned to all the other units in the ratio of the number of employees while Maintenance section overheads are apportioned 70% and 30% to Machine shop and Fitting section respectively. Required:

  1. Prepare a statement showing the apportionment of overheads
  2. Calculate the overhead absorption rates to products for total Machine shop overheads and Fitting section overhead using number of units produced

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