An engineering company which uses job costing to attribute costs to individual products and services provided to its customers has began the preparation of its fixed production overhead cost budget for 2017.

Cost has been identified as follows:

Machining AssemblyFinishing Stores Maintenance

K000K000K000K000 K000

Apportioned cost6,0002,5001,5001,000 800

The stores and maintenance departments are production department and provide services as follows:

Machining AssemblyFinishing Stores Maintenance

Stores 40%30%20%- 10%

Maintenance 55%20%20%5% -

The number of machine and labour hours budgeted for 2018 is:

Machining AssemblyFinishing

Machine 50,0004,0005,000

Labour hours 10,00030,00020,000

Required:

(a) Calculate appropriate overhead absorption rates for each production department for 2017.