1 IN D 74%) Da 74% i 15:08 R MANAGEMENT... (Total 25 marks) Question 3 Oscar Ltd has two production departments, Fabrication and Assembly, and two service departments, Tooling and Maintenance. The budgeted activity levels for April 2012 were thus: Fabrication 200 hours N$ 8,000 Finishing 1,200 hours N$ 4,800 The service departments are apportioned thus: Tooling 70% to Fabrication 20% to Finishing 10% to Maintenance Maintenance 50% to Fabrication 30% to Finishing 20% to Tooling During April 2012 the actual results were: Fabrication 210 hours N$ 6,000 Finishing 1,150 hours N$ 4,000 Tooling N$ 2,500 Maintenance N$ 1,500 Required: (a) Calculate the budgeted overhead absorption rate per hour for each of the production departments. (4 marks) Page 4 of 5 (b) Calculate the amount of overhead to be charged to each of the production departments. (9 marks) (c) Calculate the actual overhead absorption rate per hour for each of the production departments (d) Calculate the amount of under or over absorption of overhead for each of the production departments. (6 marks) Total 25 marks)