Mwanamaida Ltd, a company located in Lusaka light industrial area, manufactures plastic containers for the pharmaceutical and cosmetic industries. The plant, in which the company undertakes all of its production, has two production departments Cutting and Shaping, and two service departments Stores and Maintenance. The information provided below has been extracted from the companys budget for the next financial year which ends on 31 st December 2019. Allocated Production Overhead Costs K Cutting department 140,000 Shaping department 160,000 Stores department 35,000 Maintenance department 28,000 Apportioned Production Overheads K Factory rent 525,000 Factory building insurance 70,000 Plant & machinery insurance 39,000 Plant & machinery depreciation 58,500 Canteen subsidy 150,000 The following additional information is also provided: Cutting Shaping Stores Maintenance Dept Dept Dept Dept Floor area (square metres) 18,000 12,000 3,000 2,000 Value of plant & machinery (K) 300,000 50,000 25,000 15,000 Number of stores requisitions 1,000 500 Maintenance hours required 2,700 2,000 300 Number of employees 34 60 4 2 Machine hours 12,000 2,000 Labour hours 9,000 15,000 Required: (a) Prepare an overhead analysis sheet based on the above information, clearly state the basis used for any apportionments. (12 marks) (b) Re-apportion the service department costs and calculate the most appropriate overhead rate for each department (rate should be calculated to two decimal places (5 marks) (c) During the year ended 31 December 2019 the following hours were actually worked and the following actual incurred: Department Labour hours Machine hours Overhead costs Incurred Cutting 8,000 14,000 K531,500 Shaping 16,000 3,000 K405,500 Calculate the over/under absorbed overhead for each of the two department for the year ended 31 st December 2019. (3 marks) (Total: 20 marks)