Hawkins Ltd is a manufacturing company located in Maun. It has three (3) production departments and two (2) service centers. You have been provided with the following information, which relates to the last accounting period, June 2022.

Description Total Mixing Assembling Finishing Canteen Maintenance BWP BWP BWP BWP BWP Indirect material 750,000 75,000 150,000 300,000 150,000 75,000 Indirect Labour 1,425,000 375,000 187,500 600,000 112,500 150,000 Factory Rent 300,000 Power 187,500 Non-current asset Depreciation 105,000 Supervisor's Wages 675,000 3,442,500

Additional Information Area in Square metres 2,500 750 600 400 300 450 Carrying amount of assets (BWP'000) 180 30 60 45 15 30 Machine hours 14,600 5,110 2,920 3,650 1,460 1,460 Horse power of machines 240 96 60 48 24 12 Direct Labour Hours 8,000 1,400 3,800 2,800 Number of employees 150 42 54 24 10 20

Required a) Prepare a statement showing distribution of overheads costs to various departments [14 marks] b) Prepare statement showing redistribution of service- departments costs to production departments. [4 marks] c) Assume the total overheads costs for the three production departments after allocation, apportionment and reapportionment for the period ending December 2021 were as shown on the table below. The cost accountant has also informed you that the Mixing and Finishing department are highly automated whilst Assembling department is labor intensive. The table also show other additional information.

Description Total Mixing Assembling Finishing BWP BWP BWP Budgeted overhead Total Cost (after allocation, apportionment, and reapportionment) 3,060,008 875,294 1,041,957 1,142,757 Actual Overheads costs 3,175,330 925,620 1,023,650 1,226,060 Additional Information Hours Hours Hours Hours Budgeted Machine hours 10,520 4,120 2,830 3,570 Actual Machine Hours 10,680 4,440 2,460 3,780 Budgeted Direct Labour Hours 7,670 1,300 3,700 2,670 Actual Direct Labour Hours 7,965 1,455 3,650 2,860 Required: i) Calculate the Absorption Overhead Rate (OAR) for each production departments. Round your answer to the nearest two decimal places. [4 marks] ii) Calculate overheads absorbed for each department using information in (I) and indicate whether it is over - absorbed or under -absorbed [5 marks]