2. The High-speed Bikes Co. uses full costing at its factory, which has two divisions, a mechanical division and a finishing division. The company provides custom body work and accessories for each bike it manufactures. The budget for the current year for the factory is as follows: Particulars Mechanical division Finishing division S000 S000 Manufacturing overhead $1,000 $ 80 Direct manufacturing labor costs 90 10 Direct manufacturing labor hours 3 16 Machine hours 20,000 3,300 The job cost record for Job #12 shows the following: Particulars Mechanical division Finishing division Direct materials used $1,400 $ 300 Direct manufacturing labor cost 60 125 Direct manufacturing labor hours 3 50 Machine hours 13 10 Other than the above factory divisions, the company has a Sales and Marketing Division and a General Admin division. It is company policy to apportion common costs as per floor space and service costs as per labor costs. The company incurs the following costs in the current year in addition to the factory costs: $000 Rent 150 Electricity for heating and 45 lighting Insurance of premises 20 Salaries for sales staff 7 Salaries for admin staff 9 Depreciation of office 14 equipment The floor space occupied is 10,000 square meters by each factory division and 2,000 square meters by each service division. Required: a. Apportion all common costs and service costs to production departments, showing all steps and workings clearly and fully to gain marks. b. Calculate the absorption rates used in each factory division for overhead allocation, if the basis is direct machine hours in the mechanical division, and direct manufacturing labor costs in the finishing division. c. Compute the full cost of Job #12. [8+4+6)