Eastern Enterprises has three departments; Welding, Assembly and Spraying. Welding calculates its predetermined overhead absorption rate based on machine hours; Assembly is based on direct labour hours while Spraying is based on direct labour cost. On $2021$ January $01,$ the company had the following estimates:

WELDING ASSEMBLY SPRAYING

Production overhead costs

$$720000$

$$35000$

$36000$

$4000$

Direct labour cost

Machine hours

Direct labour hours

The labour rate is $$150$ per hour for all departments.

Job $303$A which was started and completed during the year showed the following:

WELDING ASSEMBLY SPRAYING

Direct material

$$5500$

$$7200$

$$9500$

Direct labour hours

$80$

$150$

$100$

Machine hours

$800$

$100$

$50$

Rental of equipment for job $303$A will amount to $$35275.$

Additional Information:

Eastern Enterprises recovers selling, distribution and administrative overheads at a rate of $20\%$ of production costs and profit is based on a margin of $20\%.$

A$.$ Compute overhead absorption rates for each department.

$(6$ marks$)$

B$.$ Calculate the cost of Job $303$A$,$ clearly showing expected profit and selling price.

$(14$ marks$)$

$($Total $20$ marks$)$