The following information relates to the departments of Tabberner plc for the year ending 31 December 2028.

The overheads of the service departments are allocated to the production departments on the following basis:

• cutting 75%;

• tooling 25%.

Calculate the overhead absorption rates for the cutting and the tooling departments. State the bases used and why.

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Overheads Direct machine hours Direct labour hours Production dept Service dept Cutting Tooling administration 28,800 42,500 4,750 8,240 12,750 2,490 18,600