CAPE Accounting Unit 2 · 2018 · Paper 2 · Question 2(a)

Lasmoy Ltd manufactures a product using Department X (labour intensive) and Department Y (machine intensive). Budgeted data: Dept X has Direct labour 600 000, Machine hours 51 000, Factory overheads 900 000; Dept Y has Direct labour 150 000, Machine hours 80 000, Factory overheads 660 000. Data for Job 748 (200 units): Dept X uses Direct materials 130 000, Direct labour 14 000, Machine hours 2000; Dept Y uses Direct materials 21 000, Direct labour 6 000, Machine hours 6000.

Compute the predetermined factory overhead rate for EACH department.

This question uses a figure or table from the paper — you'll see it when you practise.