DAY Limited is an engineering company which uses job costing to attribute costs to individual products and services provided to its customers. It has commenced preparation of its fixed production overhead cost budget for the year 2022 and has identified the following costs: (P000) Machining department 600 Assembly department 250 Finishing department 150 Stores department 100 90 Total 1,190 Maintenance department The stores and maintenance departments are service departments. An analysis of the services they provide indicates that costs should be apportioned accordingly: Stores Maintenances Machining Assembly Finishing Stores Maintenance 40% 30% 30% 55% 20% 25% The number of machine and labour hours budgeted for 2022 are: Machine hours Labour hours Machining Assembly Finishing 50 000 10 000 4.000 5 000 30 000 20 000 Requirements: (a) Prepare an overhead analysis sheet to re-assign service department costs to production department cost centers using the appropriate cost apportionment methods. (4 marks) (b) Calculate appropriate overhead absorption rates for each production department for the year 2022. (6 marks) (c) Prepare a quotation for job number J05,which is to be commenced early in 2022, assuming that it will require: Direct materials costing P2,400 Direct labour costing P1,500 And: 8 Machine Hours Labour Hours Machining department Assembly department Finishing department 062 454 10 15 12 And that a profit margin of 20% is added on total cost to calculate the selling price. (9 marks) (d) Assume that in 2022 the actual fixed overhead cost of the assembly department totals P300 000 and that the actual machine hours were 4 200 and actual labour hours were 30 700 Calculate any over /under-absorption in the assembly department and state any two possible causes. (6 marks) Total: 25 marks