Question 23 (15 points) Harveys Furniture is a specialist's manufacturer of different types of tables. In 2018, the company started producing a new form of office table. The following information has been recorded on their cost card by the cost accountant: Manufacturing Manufacturing Service Service Total 1 Dept. 2 Dept. 1 Dept. 2 Dept. 1 Allocated Overheads 86,850 32,400 29,200 12,400 12,850 General Overheads Indirect Labour 32,000 Heat & Light 48,600 Repairs & Maintenance 34,700 Canteen Subsidy 5,100 Machine Depreciation 10,400 Machine Insurance 6,250 Total 223,900 The following additional information was extracted from the company's management accounting records. Manufacturing Manufacturing Service Service Dept. 1 Dept. 2 Dept. 1 Dept. 2 2,500 4,000 1,000 Floor area sq.m 500 Dept. 1 2 Dept. 2 Dept. 1 Dept. Floor area sq.m 500 2,500 4,000 1,000 Direct labour hours 30,000 5,000 Indirect labour hours 30,000 5,000 Direct labour rate per hour () 12 30 5 Number of staff Machine hours 2,500 25,000 200,000 10,000 40,000 Machine value () Service Dept. overheads are to be re-apportioned as follows Service Dept. 1 overheads 20% 80% Service Dept. 2 overheads 50% 50% Data on two jobs being undertaken by the company is as follows: Job E23 Job A49 Direct materials cost () 240 420 Machine hours 5 20 Direct labour hours Manufacturing Dept. 1 40 25 Manufacturing Dept. 2 4. 5 Required: a. Prepare a statement showing the overhead cost for each department (include the basis of apportionment, where appropriate). (10 Marks) b. Calculate a suitable overhead absorption rate for each department, using a basis that you deem suitable. (2 Marks) Show the total cost of Job E23 and the total cost of Job A49