06. Coalbrook Engineering has estimated the following factory indirect costs for its next financial year Indirect wages Repairs and maintenance Rent and rates Insurance of premises Insurance of machinery Depreciation of machinery Heating and lighting Sundries E 1 480 500 241 400 48 000 23 400 18 600 12 000 31 600 20 250 The company wishes to calculate a suitable overhead absorption rate for each of its two production departments and the following information is available: Production Departments Service Departments Machining Finishing Canteen Maintenance Stores Machine cost (E) 240000 120000 40000 Direct machine hrs 209000 8800 2200 Direct labour hrs 42000 180000 Floor area (Sq. M) 7000 3500 1400 700 1400 aucho WHERE WE ALL COME TOGET ALPHA COLLEGE PAGE 167 HUNAIN SALEEM Number of employees 42 7 2 6110 3564 3675 5155 The proportion of work done by service departments is Machining Finishing Canteen Maintenance Canteen (5) 50 40 Maintenance (35) 20 Stores % 30 Stores 4 888 REQUIRED (a)' For Coalbrook Engineering calculate using appropriate bases, the oversas absorption rate for each of the two production departments 06. Coalbrook Engineering has estimated the following factory indirect costs for its next financial year Indirect wages Repairs and maintenance Rent and rates Insurance of premises Insurance of machinery Depreciation of machinery Heating and lighting Sundries E 1 480 500 241 400 48 000 23 400 18 600 12 000 31 600 20 250 The company wishes to calculate a suitable overhead absorption rate for each of its two production departments and the following information is available: Production Departments Service Departments Machining Finishing Canteen Maintenance Stores Machine cost (E) 240000 120000 40000 Direct machine hrs 209000 8800 2200 Direct labour hrs 42000 180000 Floor area (Sq. M) 7000 3500 1400 700 1400 aucho WHERE WE ALL COME TOGET ALPHA COLLEGE PAGE 167 HUNAIN SALEEM Number of employees 42 7 2 6110 3564 3675 5155 The proportion of work done by service departments is Machining Finishing Canteen Maintenance Canteen (5) 50 40 Maintenance (35) 20 Stores % 30 Stores 4 888 REQUIRED (a)' For Coalbrook Engineering calculate using appropriate bases, the oversas absorption rate for each of the two production departments