QUESTION $1$:

A furniture making business manufactures quality furniture to customers orders. It has three production departments and two service departments. Budgeted overhead costs for the coming year are as follows:

The three production departments A$,$ B and C$,$ and the two service departments X and Y$,$ are housed in the new premises, the details of which, together with other statistics and information, are given as follows:

Required:

$($a$)$ Prepare a statement showing the overhead cost budgeted for each department, showing the basis of apportionment used. Also calculate suitable overhead absorption rates.

$($b$)$ Two pieces of furniture are to be manufactured for customers. Direct costs are as follows:

Calculate the total costs of each job.

$($c$)$ If the firm quotes prices to customers that reflect a required profit of $25$ per cent on selling price, calculate the quoted selling price for each job.