A company is preparing its overhead budgets for an upcoming period. The company has three production departments, milling, processing and packaging and two service departments, stores and inspection. The following data has been provided: Overhead cost Machine hours Inspection Milling Processing Packaging Stores $240,000 $252,000 $270,000 $240,000 $252,000 30,000 24,000 26,000 Overhead is absorbed on a machine hour basis. It has been estimated that service department usage is as follows: Milling Processing Packaging Stores Inspection 2,700 1,350 9,450 4,050 5,850 5,850- 3,900 Stores Requisition #of inspections Required: (a) Define 0 Overhead allocation (1) Overhead apporzionment. (b) Prepare a schedule of the overhead costs to be charged to departments A, B and C, using the repeated distribution method to apportion the service department costs to the production departments. (Work to the nearest $.) [15 marks] (c) Calculate the overhead absorption rates for the period for departments A, B and C. (2 dp) Material Direct Labour - Milling 3,900 Type here to search [1 mark] [1 mark] (d) Calculate the selling price of Job 189C to the nearest $ based on the estimates below and using the overhead absorption rates calculated in (c) above. The company requires a profit of 25% of the selling price 210 kilos@ $40 per kilo 45 hours@ $210 per hour loci Et 0.06.0 19 [3 marks] A 28C

data has been provided: Overbead is absorbed on a machine hour batis. It has been eatimated that service department usage is at fol iswe [1S marks] (3anake) 5) [15 marks] [3 marksi] data has been provided: Overbead is absorbed on a machine hour batis. It has been eatimated that service department usage is at fol iswe [1S marks] (3anake) 5) [15 marks] [3 marksi]