Question 2 (22 marks) The Production Manager of ACE Productions provided the following budgeted information for each department. Additionally, there are two service departments: Stores and Maintenance. The following data below are the budgeted data for the same period: Indirect Labour Indirect Materials Other Expenses Labour hours Machine hours A $5,062,500 $1,012,500 $2,700,000 525,000 337,500 B $2,531,250 $843,750 $3,375,000 270,000 506,250 $4,218,750 $2,531,250 $1,687,500 675.000 843,750 Maintenance $1,350,000 $2,025,000 $675,000 Stores $1,687,500 $2,362,500 $2.700,000 Below are the actual overhead and actual activities for the three (3) production departments at General's Ltd for the year ended August 2018. Indirect Labour Indirect Materials Other Expenses Labour hours Machine hours A $5,062,500 $1,687,500 $3,375.000 687,500 337,500 B $675,000 $1,012,500 $5,062,500 337,500 675,000 $1,012,500 $2,362,500 $4,218,750 843.750 1,012,500 Overhead is absorbed based on how intensive the individual departments are considered. It has been estimated that service department usage is as follows: Maintenance A 30% 60% Maintenance Stores B 45% 15% 15% 20% Stores 10% 5% 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. [16 marks b. Calculate the overhead absorbed in each department. [3 marks) c. Calculate the under/over absorbed overheads for each department. [3 marks)