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 (m2) Stores 7,600 1,900 requisitions Machine hours 1,000 500 Labour hours 2,000 800