Q.3 A production centre has three production departments, A, B and C. Budgeted production overhead costs for the next period are as follows: $ Factory rent 60,000 Equipment depreciation 80,000 Insurance 20,000 Heating and lighting 18,000 Indirect materials: Department A 7,000 Department B 6,600 Department 9.400 Indirect labor: Department A 40,000 Department B 27,000 Department 20,000 Insurance costs relate mainly to health and safety insurance, and will be apportioned on the basis of the number of employees in each department. Heating and lighting costs will be apportioned on the basis of volume. Other relevant information is as follows: Total Dopartment Department Department Direct labor hours Number of employees Floor area (square meters) Cost of equipment (5000s) Volume (cubic meters) 18,000 50 1,200 1,000 18,000 8,000 20 300 200 8,000 6,000 16 400 600 6,000 4,000 14 500 200 4,000 Required (a) Calculate the overhead costs for each production department (05 Marks) (b) Calculate an overhead absorption rate for the period for each department assuming that a separate direct labor hour absorption rate is used for each department (05 Marks) (c) Calculate an overhead absorption rate for the period, assuming that a single factory-wide direct labor hour absorption rate is used. (05 Marks)