Homework 4 Sazz Ltd. produces two products A and B in three production departments (assembling, painting and sales). It also has two service departments (maintenance and cleaning). Required: Distribute the overheads based on an adequate basis and calculate the planned overhead absorption rates using the sequential method (use the most appropriate sequence regarding interrelationships – use book for help): -Direct labour hour rate for assembling department -Machine hour rate for the painting department -Rate per product for the sales department Round appropriately for currency values. Production Departments Service Departments Assembling Painting Sales Maintenance Cleaning Total Allocated overheads 40,000€ 20,000€ 30,000€ 50,000€ 60,000€ 200,000€ Rent, heat, light 78,000€ Depreciation 90,000€ Additional data Gross book value of equipment 55,000€ 45,000€ 110,000€ 25,000€ 65,000€ 300,000€ Floor space occupied in m² 3,000 4,000 5,000 2,000 1,000 15,000 Maintenance service hours 2,000 1,500 700 300 4,500 Direct labor hours 15,000h Machine hours 8,000h Number of products 2,000