ABC Company has estimated that the factory indirect cost for the next financial year as follows $ Indirect wages 750700 Repairs and maintenance 113600 Canteen 55600 Insurance on premises 50000 Insurance on machines 37000 Heat and light 23400 sundries 7000 ABC Company Wishes to calculate a suitable overhead absorption rate (QAR) for production departments. The Following information is available: Production Department Production Department Service Department Service Department Machining Assembly Repairs Canteen Machine Cost($) 460000 150000 Machine hours 500000 36000 Direct labour hours 91000 250000 Floor area (M2) 7000 2800 1000 Number of Employes 60 100 400 Sundries 3006 2466 196 Proportion of work done by each service department Machining Assembly Repairs Canteen Repair(%) 70 40 - Canteen (%) 40 60 20 - Broiler House (%) 100 20 - Actual Results were as follows: Machining Assembly Indirect Cost($) 544200 43500 Machine Hours 490000 346000 Direct Labour Hours 97000 246000 Required A. Calculate an appropriate QAR for each production department , stating suitable bases for apportioning the factory indirect cost B. Calculate the amount of overhead that would be over or under absorbed department. C. Explain the significance of the results you have calculated