Overhead analysis sheet and calculation of overhead absorption rates PTS Limited is a manufacturing company which uses three production departments to make its product. It has the following factory costs which are expected to be incurred in the year to 31 December:

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() Direct wages Machining 234 980 Assembly Finishing 345 900 134525 () Indirect wages and Machining 120354 salaries Assembly 238 970 Finishing 89 700 Factory rent Business rates Heat and lighting Machinery power Depreciation Canteen subsidy () 12 685 500 3450 900 985 350 2 890 600 600 000 256 000