Question 2 (21 marks) Below are the actual overhead and actual activities for the three (3) production departments at Groceries R Us for the year ended August 2021. A B Indirect Labour $93,750 $12,500 $18,750 Indirect Materials $31,250 $18.750 $43,750 Other Expenses $62,500 $93,750 $78,125 Machine hours 6,250 12.500 18,750 Labour hours 31,250 6.250 15,625 Prior to the end of the period, the production manager provided the following budgeted information for each of the departments. The entity also has two service departments: Stores and Maintenance. The following immediately below are the budgeted data for the same period: Indirect Labour Indirect Materials Other Expenses Labour hours Machine hours A $93.750 $18,750 $75,000 37,500 6,250 B $46.875 $15,625 $62,500 5,000 9,375 $78,125 $46,875 $31,250 12.500 15.625 Maintenance $25,000 $37,500 $12,500 Stores $31.250 $43,750 $50,000 Overhead is absorbed based on the intensity of the individual departments. It has been estimated that service department usage is as follows: Maintenance Stores A 30% 45% Maintenance Stores B 40% 30% 25% 15% 5% 10% Required: a) Prepare a schedule to apportion the notional service cost to production and the total overheads for the production departments after apportionment. Hint: use simultaneous equations to derive the notional values. (15 marks) b) Calculate the overhead absorbed in each department. (3 marks) c) Calculate the under/over absorbed overheads for each department