Gold Rings Ltd. is a manufacturing company that produces rings. The production process is divided into two production departments: Hobbit and Fairy. There is one service department, the Canteen department, which is used by the production departments. The relevant information for the year ahead is as follows: Total Overheads for all the departments: Item Depreciation Rent TOTAL Total 146,000 128,000 274,000 The following information is available about each department: Item Hobbit Fairy Canteen () () () Value of 65,000 25,000 10,000 machinery () Floor Space 45,000 30,000 25,000 (m) Stores 7.600 1.900