dame Question 2 Shilongo Ltd uses Job costing to attribute costs to individual products and services provided to its customers. It has begun the preparation of its fixed production cost budget for the forthcoming period. The company has three production departments Machining, Assembly and Finishing; and two service departments Stores and Maintenance. The following costs have been produced: Machining Assembly Finishing Stores Maintenance 1,500 Overhead cost $ 6,000 2,500 1,000 800 The number of machine and labour hours budgeted for the forthcoming period is budgeted as follows:- Machine hours Machining 500 Assembly 40 Finishing 50 Labour hours 100 300 200 Overheads are absorbed in Assembly and Finishing departments on a Labour hour basis; and in Machining department they are absorbed on a Machine Hour basis. It has been estimated that service departments usage is as follows: Machining Maintenance Stores 55% Assembly 20% Finishing 20% Stores Maintenance 5% 40% 30% 20% 10% Required: (a) Prepare a schedule of overheads costs to be charged to production departments (12 marks) Machining, Assembly and Finishing. (work to the nearest Cent) (b) Calculate the overhead absorption rates for departments Machining, Assembly and Finishing for the forthcoming period. (work to the nearest Cent) (6 marks) (c) Prepare a quotation for job K64 to be commenced next period, assuming it has: Direct material Direct labour and requires: Costing $240 Costing $150 Machine Labour hours hours Machining department 45 10 Assembly department 5 15 Finishing department 4 52 12 and that profit is 20% of selling price. Page 3 of 6 4/2 (7 marks) (Total 25 marks)