Joy Co. is a manufacturing company with two production departments Cutting and Finishing. Budgeted overhead costs for the second quarter of 2020 are listed below: Production Departments $ Costs allocated: Cutting 15,900 Finishing 12,300 $ Other overhead costs: Factory rent 81.243 Factory insurance 37.632 Power Other information: Cutting Department Finishing Department Power usage (%) 70% 30% Floor area (sq. m) 20,000 10.000 No. of workers 30 49.000 20 Cutting Department is machine intensive while Finishing Department is largely labour- based. Machine hours Direct labour hours Cutting Department 14,000 10,000 Finishing Department 6,000 20,000 Required: (1) Calculate the overhead absorption rate in each department by completing the table. You are required to use the most appropriate basis to apportion the relevant overhead costs. (Please show detailed workings and round up your answers to two decimal places.) (30 marks) (ii) One of the products of Joy Co. is Onde. Cost information to produce one unit of Onde is as follows: Direct materials 2 kg at $3.50 per kg Direct labour 2.5 hours at $5.00 per hour Time spent in: Cutting Department 2.5 machine hours Finishing Department 4.0 labour hours Find the cost per unit of Onde. (Please show detailed workings and round up your answers to two decimal places.) (5 marks) Solutions: (1) Basis Total $ Production Department Cutting Finishing $ $ Allocated Apportionment Total Activity Base Overhead Absorption Rate