its production departments by means of departmental rates per direct labour hour. In a A manufacturing company has four production departments. Overhead cost is absorbed to particular year, there was a large difference between the overhead cost incurred and the overheads absorbed. On analysis you get the following information: Departments B D $ $ $ Overheads incurred 12,320 44,385 18,180 16,720 Actual direct labour hours worked 30,800 80,700 40,400 30,400 Estimated departmental rate used 0,50 0,45 0,40 0,50 Total overheads absorbed 15,400 36,315 16,160 15,200 Direct labour hours contained in: Work-in-progress 3,000 10,400 1,900 7,200 Finished goods 4,300 8,300 4,000 2,900 You are required to: (a) Calculate, for each deptt, the direct labour hour rates of overheads incurred; (b) Calculate the extent to which the values of work-in-progress and finished goods should be increased or decreased for each department for the year in view of corrected rates; (c) What will be the impact on total profit of the company in view of the correction in above