Mandevu Enterprises Ltd (MEL) makes and sells furniture. The company has two production departments: Cutting and Assembly, and two support departments: Stores and Machine Maintenance. MEL uses a traditional absorption costing system to allocate production overheads to products. The following budgeted cost information is available for the month: MFI nrenared the fnllnwinn additinnal infnrmation Required: (a) Explain the terms direct costs and indirect costs, giving examples. (4 marks) (b) Prepare a schedule of the total budgeted overheads for each of the four departments, clearly showing the basis of apportionment. (11 marks) (c) Calculate the total budgeted overheads for each of the production departments after the service departments have been re-apportioned. (3 marks) (d) Compute the budgeted overhead absorption rates for each of the production departments. (4 marks)