9a

Service 1 Service 2 Canteen Administration

Rent and rates 150,000.00 200,000.00 75,000.00 75,000.00 500,000.00
Fixtures depreciation 240,000.00 160,000.00 100,000.00 200,000.00 700,000.00
Electricity, gas and water 52,500.00 70,000.00 26,250.00 26,250.00 175,000.00
Supervisors' salaries 300,000.00 225,000.00 37,500.00 187,500.00 750,000.00
Canteen costs 21,052.63 15,789.47 10,000.00 13,157.89 60,000.00
763,552.63 670,789.47 248,750.00 501,907.89

Service 1 Service 2 Canteen Administration

Rent and rates 3,000.00 4,000.00 1,500.00 1,500.00 10,000.00
Fixtures depreciation 120.00 80.00 50.00 100.00 350.00
Electricity, gas and water
Supervisors' salaries 40.00 30.00 5.00 25.00 100.00
Canteen costs

9b
Service 1 Service 2 Canteen Administration
Total overhead 740,000.00 650,000.00 280,000.00 500,000.00
Floor area 3,000.00 4,000.00 1,500.00 1,500.00 10,000.00
Fixtures cost 120.00 80.00 50.00 100.00 350.00
Number of employees 40.00 30.00 5.00 25.00 100.00

Total overhead 740,000.00 650,000.00 280,000.00 500,000.00 2,170,000.00

First reapportionment 266,666.67 200,000.00 33,333.33 (500,000.00)
Revised total overheads 1,006,666.67 850,000.00 313,333.33 -
Second reapportionment 179,047.62 134,285.71 (313,333.33)
Revised total overheads 1,185,714.29 984,285.71 - - 2,170,000.00

9c
Budgeted overhead 1,200,000.00 980,000.00
Budgeted labor cost 2,940,000.00
Actual overhead 1,200,000.00
Budgeted labor hours 5,000.00
Actual labor hours 5,344.00
33%

9d
Over absorption 344.00 hours
82,560.00
based on rent and rates

based on supervisors' salaries except canteen

500,000.00
700,000.00
175,000.00
750,000.00 95.00
60,000.00

250.00
70.00
75.00

based on number on employees

based on number on employees

5