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. Indirect Labour Indirect Materials Other Expenses Machine hours Labour hours A B C $93,750 $12,500 $18,750 $31,250 $18,750 $43,750 $62,500 $93,750 $78,125 6,250 12,500 18,750 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: A B C Maintenance Stores Indirect Labour $93,750 $46,875 $78,125 $25,000 $31,250 Indirect Materials $18,750 $15,625 $46,875 $37,500 $43,750 Other Expenses $75,000 $62,500 $31,250 $12,500 $50,000 Labour hours 37,500 5,000 12,500 Machine hours 6.250 9,375 15,625 Overhead is absorbed based on the intensity of the individual departments. It has been estimated that service department usage is as follows: A B C Maintenance Stores Maintenance Stores 30% 40% 25% 5% 45% 30% 15% 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. b) Calculate the overhead absorbed in each department. (15 marks) (3 marks) c) Calculate the under/over absorbed overheads for each department. (3 marks)