Cake Manufacturers Ltd completes a range of jobs for customers. The budgeted production overhead costs for the next year are: Cost Allocated Overheads: Manufacturing Dept. 1 64800 Manufacturing Dept. 2 58400 Service Dept. 1 24800 Service Dept. 2 25700 Other Overheads: Indirect labour 164000 Heat and light 97200 Repairs and maintenance 69400 Salaries of Works Management 10200 Depreciation of Plant and Machinery 20800 Insurance of Plant and Machinery 12500 The further additional data is available: Floor space Manufacturing Dept. 1 5000 Manufacturing Dept. 2 8000 Service Dept. 1 Service Dept. 2 2000 1000 occupied (sq. m.) Direct labour hours 50000 4000 Indirect labour 60000 10000 hours Direct labour rate 12 8 per hour Number of staff 60 10 Machine hours 5000 50000 Machine value 80000 400000 20000 The Service Departments support the manufacturing departments only. The reapportionment percentages for Manufacturing Dept 1. are 30% for Service Dept. 1 and 60% for Service Dept. 2. REQUIREMENTS: (a) Prepare a statement showing the overhead cost for each department (include the basis of apportionment and workings). 14 marks (b) Calculate a suitable overhead absorption rate for each manufacturing department, explaining why each is appropriate. 3 marks