Question

mptech CC provides four different types of services to small business clients. These services are:
• Sales undertaken by the Sales Division
• Programming undertaken by the Programming Division
• Repairs and Maintenance undertaken by the Maintenance Division
• Networks undertaken by the Technical Division
The labour and overhead costs for the company for the year ended 30 April 2020 are expected to be as follows:
Budget for the Year ended 28 February 2013 Notes N$
Payroll Salaries - Programmers 108 750
Salaries – Sales personnel 70 000
Salaries - Technicians 1 92 750
Salaries - Supervisors 2 54 300
Other Rentals paid 110 000
Security costs 22 000
Electricity costs 11 500
Insurance of premises 27 500
Depreciation - Computer Equipment 36 875
- Office Equipment 12 750
546 425

Sales Programming Maintenance Network
Value of Computer Equipment (N$) 400 000 120 000 40 000 30 000
Value of Office Equipment (N$) 30 000 10 000 15 000 5 000
Floor Area (m²) 100 20 60 40
Electricity usage (Kilowatt hours) 280 100 40 40
Budgeted operated hours 12 000 4 800 3 000 7 600

Note 1: The Technicians are shared between the Maintenance and Technical Divisions in proportion to the budgeted hours for those two divisions.
Note 2: Supervisor salaries are apportioned to the other divisions in proportion to the salaries of the other divisions.
Required:
3.1 Produce an overhead apportionment schedule for the year ended 30 April 2020. 16
3.2 Calculate an overhead absorption rate for each of the divisions, that is: Sales, Programming, Maintenance, Network (four decimal places).
8

Answer 1

Answer:

tq for the information..