Question 2 Broxton Ltd. makes a specialised chemical, X14 in barrels at its factory. The factory has two departments: the processing department and the finishing department. Because of the technology involved, Broxton apportions both the budgeted and the actual total factory fixed overheads between the two departments on the basis of budgeted machine hours. The standard absorption cost per barrel of X14 in the processing department, and the budgeted production for the five weeks ended May 31, 2020. Input Material Labour Fixed overheads Processing department: standard cost per barrel of X14 Quantity 10 litres 8 labour hours 16 machine hours Standard price/rate Cost $ $60 per litre 600 $8 per labour hour 64 $20 per machine hour 320 Standard absorption cost per barrel Budgeted production 5 weeks ending May 31, 2020. The information for the five weeks ended May 31, 2020 are as follows: Total factory budgeted and actual data Factory budgeted machine hours 1,152 machine hours Factory budgeted fixed overheads $23,040 984 Factory actual fixed overheads $26,000 Budgeted and actual factory fixed overheads are apportioned between the processing and finishing departments on the basis of budgeted machine hours. Processing department actual data Actual Materials @$58.50 per litre Labour (328 hours) Actual production output Actual machine hours worked Total cost $23,985 $2,788 40 barrels 656 hours As the Management Accountant of the company you are required to prepare standard costing reconciliation statements.