Below are the actual overhead and actual activities for the three (3) production departments at General's Ltd for the year ended August 2018. A B C Indirect Labour $3,375,000 $ 450,000 $ 675,000 Indirect Materials $1,125,000 $ 675,000 $1,575,000 Other Expenses $2,250,000 $3,375,000 $2,812,500 Machine hours 225,000 450,000 675,000 Labour hours 1,125,000 225,000 562,500 Prior to the end of the period, the production manager provided the following budgeted information for each of the departments. The entity also has two service departments: Stores and Maintenance. The following immediately below are the budgeted data for the same period: B $1,687,500 Indirect Labour A $2,250,000 C $2,812,500 Indirect Materials $ 675,000 $ 562,500 Other Expenses $2,700,000 Labour hours 1,350,000 Machine hours 225,000 $2,250,000 180,000 337,500 $1,687,500 $1,125,000 450,000 562,500 Maintenance Stores $ 900,000 $ 1,125,000 $1,350,000 $ 1,575,000 $ 450,000 $ 1,800,000 Overhead is absorbed based on how intensive the individual departments are considered. It has been estimated that service department usage is as follows: Maintenance Stores Required: A B 20% 40% C 20% Maintenance Stores 20% 50% 20% 20% 10% (a) Prepare a schedule to apportion the notional service cost to production and the total overheads for the production departments after apportionment. Hint: use simultaneous equations to derive the notional values. (b) Calculate the overhead absorbed in each department. (13 marks) (12 marks) (c) Calculate the under/over absorbed overheads for each department and the entity in total. (6 marks) (d) What are the two main factors that give rise to over/under absorption of overheads? (2 marks)