Go Faster Ltd is a production company comprises of four departments: Cutting Finishing Maintenance Canteen (production department) (production department) (service department) (service department) The budgeted fixed production overheads of the company for July were as follows: General Overheads Machine insurance Rent Supervisors' salary 125,000 49,000 34,000 208,000 The following information is also relevant: Cutting Finishing Maintenance Canteen Machine value Floor area (sq. m.) Employees 645,000 222,000 85,000 0 810 22 220 14 90 15 8 0 Overheads are allocated and apportioned using the most appropriate method. Once canteen costs have been apportioned to the other three cost centres, the total maintenance overheads are then reapportioned to the cutting and finishing department. The maintenance records show that 60% of time is spent in the cutting department and 40% in the finishing department. The cutting department is a labour-intensive process; the finishing department is dominated by machinery. The following information relates to the cutting and finishing departments for July: Departments Cutting Finishing Labour hours Machine hours 3,565 hours 7,300 hours 2,500 hours 17,915 hours Required: a) b) Prepare an analysis of production overheads showing the basis of your allocation and apportionment to the four departments. Then apportion any 'service' costs to the production departments. Calculate the overhead absorption rates for: i. the cutting department ii. the finishing department [22 Marks] [