10a

Rent and rates 60,000.00

Machinery depreciation 60,000.00
Building utility costs 90,000.00
Managers' salaries 120,000.00
Warehousing department costs 175,000.00
Administration department costs 50,000.00

Cabinets Worktops Warehousing Administration

Direct labour cost 65.00 35.00 50.00 100.00
Machinery cost 400.00 300.00 300.00
Floor area 2,200.00 1,800.00 10,000.00 1,000.00

Cabinets Worktops Warehousing Administration

Rent and rates 8,800.00 7,200.00 40,000.00 4,000.00
Machinery depreciation 24,000.00 18,000.00 18,000.00 -
Building utility costs 13,200.00 10,800.00 60,000.00 6,000.00
Managers' salaries 31,200.00 16,800.00 24,000.00 48,000.00
Warehousing department costs 70,000.00 52,500.00 52,500.00 -
Administration department costs 13,000.00 7,000.00 10,000.00 20,000.00

10b
Cabinets Worktops Warehousing Administration
Total overhead 170,000.00 70,000.00 300,000.00 80,000.00
Direct labour cost 70.00 30.00 50.00 100.00
Machinery cost 400.00 300.00 300.00
Floor area 2,200.00 1,800.00 10,000.00 1,000.00

Cabinets Worktops Warehousing Administration

Total overhead 170,000.00 70,000.00 300,000.00 80,000.00
Administration reapportionment 37,333.33 16,000.00 26,666.67 (80,000.00)
Revised total overheads 207,333.33 86,000.00 326,666.67 -
Warehousing reapportionment 186,666.67 140,000.00 (326,666.67)
Revised total overheads 394,000.00 226,000.00 - -
4c
Cabinets Worktops Warehousing Administration
Total budgeted overhead 400,000.00
Total budgeted labour 75,000.00 35,000.00
Actual labour cost 33,365.00
533%

10d
under absorption 1,635.00
8,175.00
 250.00
1,000.00
15,000.00

60,000.00
60,000.00
90,000.00 based on floor area
120,000.00
175,000.00 based on machinery cost
50,000.00 based on direct labour cost

250.00 150.00
1,000.00 700.00
15,000.00