Jeremy Fernando is the owner of Fernando Garden Furniture Ltd, a company that makes Sri Lankan teak garden furniture. The following table shows the budgeted monthly production overheads.

The company has two production cost centres and one service cost centre, details of which are shown opposite.

Required

(a) Determine a suitable basis of apportionment for the indirect costs that have not been allocated and prepare a production overhead analysis for Fernando Furniture Ltd.

(b) Calculate the machine hour overhead absorption rate for the machine department.

(c) Calculate the direct labour hour overhead absorption rate for the assembly department.

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Production overheads Indirect materials 24,500 Indirect labour 54,500 Rent and rates 26,000 Lighting and heating 4,000 Depreciation on machinery 36,000 Supervisors' salaries 42,000