Don Engineering Limited produces front and rear fenders for a motorcycle manufacturer. It has three production departments and two service departments. Overheads are allocated on the basis of direct labour hours. The management is considering changing the basis of overhead allocation from a single overhead absorption rate to departmental overhead rate. The estimated annual overheads for the five departments are as follows:- Production Departments Service Fabrication Phosphate Painting Inspection Maintenance $000 $000 $000 $000 $000 Direct materials 13,500 600 1,500 0 0 Direct labor cost 2,400 770 960 0 0 Indirect material 0 0 0 60 150 Other variable overheads 400 140 200 60 30 Fixed overheads 960 130 230 300 420 Total departmental expenses 17.260 1,640 2.890 420 600 Maximum production capacity 40,000units 50,000units 60,000units Direct labour hours 48,000 19,200 24,000 Machine hours 18,000 2,000 2,400 Use of service departments: 0 0 0 Maintenance - Labor hours 1,260 546 294 Inspection Inspection hours 2,000 1,000 3,000 REQUIRED: a) Indicate the single overhead absorption rate for the next year. (5 marks) b) Indicate the departmental overhead absorption rates in accordance with the following: i) The Maintenance Department costs are allocated to the production department on the basis of labour hours. ii) The Inspection Department costs are allocated on the basis of inspection hours. iii) The Fabrication Department overhead absorption rate is based on machine hours. iv) Overhead rates for Phosphate and Painting Departments is based on direct labour hours. (20 marks)