3. Deccan Manufacturing Ltd., have three departments which are regarded as production departments. Service departments' costs are distributed to these production departments using the "Step Ladder Method" of distribution. Estimates of factory overhead costs to be incurred by each department in the forthcoming year are as follows. Data required for distribution is also shown against each department: Department Factory overhead Direct labour hours No. of employees Area in sq.m. Production: X Y 1,93,000 64,000 83,000 4,000 3,000 4,000 100 125 85 3,000 1,500 1,500 Z Service: P Q R 45,000 75,000 1,05,000 30,000 1,000 5,000 6,000 3,000 10 50 40 50 500 1,500 1,000 1,000 The overhead costs of the four service departments are distributed in the same order, viz., P, Q, R and S respectively on the following basis. Department P Q R S Basis Number of employees Direct labour hours Area in square metres Direct labour hours You are required to: 109 (a) PREPARE a schedule showing the distribution of overhead costs of the four service departments to the three production departments; and (b) CALCULATE the overhead recovery rate per direct labour hour for each of the three production departments