Question 1 (20 marks) XYZ Company has two production centres and two service centres to which the following budgeted information applies: Total Power (kWh) Number of staff Floor area (m) Direct labor hours Machine hours Production centres Assembly Machining 18.000 5,000 14 6 5.900 1.400 2,400 1,040 1,500 4,570 Service centres Stores Maintenance 1,000 1.000 2 400 300 25.000 25 8,000 The following budgeted overheads were recorded for the month just ended: RM 12.000 6,000 2,000 Rent Electricity Welfare costs Allocated supervisors. Assembly Machining 1,500 1,000 The service centres work for the other centres as follows: Assembly Machining Stores Maintenance Work done byd Stores Maintenance 10% 50% 45% 40% 50% 5% Required a) Prepare an overhead analysis showing the overhead allocation and apportionment process. Reapportion service centres using the reciprocal (indirect) method. (16 marks) b) Calculate the overhead absorption rate (CAR) for each production department by using the direct labor hours as a basis for Assembly and machine hours as a basis for Machining (4 marks)