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Monica Enterprises is preparing its overhead budgets for a forthcoming period. The companyhas three production departments A , B and C , and two service

Monica Enterprises is preparing its overhead budgets for a forthcoming period. The companyhas three production departments A, B and C, and two service departments X and Y.The following figures have been produced:Overhead cost (N$) A 40000 B 42000 C 45000 X 40000 Y42000Machine hours A15000 B12000 C13000Overhead is absorbed on a machine hour basis.It has been estimated that service department usage is as follows:Department X A20% B30% C10% Y40%Department Y A30% B30% C20% X20%2.2Prepare a schedule of the overhead costs to be charged todepartments A, B and C, using the repeated distribution method toapportion the service department costs to the production departments(work to the nearest N$).2.3 Calculate the overhead absorption rates for the period for departmentsA, B and C (work to the nearest N$).

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