Question 3 (35 marks) Sand Ltd. is a production firm with two production departments Cutting and Finishing. Budgeted overhead costs for the first quarter of 2022 are listed below: Production Departments S Costs allocated: Cutting 36,100 Finishing 15,600 Other overhead costs: Factory rent & rates 80,000 Power 20,000 Factory insurance 24,000 Other information: Floor Area Power Usage (%) No. of Personnel Cutting Department Finishing Department 40,000 60,000 40% 40 60% 30 Cutting Department is machine-intensive while Finishing Department is mainly labour- intensive. Machine Hours Direct Labour Hours Cutting Department Finishing Department Required: 30,000 10,000 10,000 40,000 (i) Calculate the overhead absorption rate in each department by completing the table. You are required to use the most appropriate basis to apportion the relevant overhead costs. (Please show detailed workings and round up your answers to two decimal places.) (30 marks) (ii) One of the products of Sand Ltd. is Pico. Cost information to produce one unit of Pico is as follows: Direct materials Direct labour Time spent in: Cutting Department Finishing Department 2 kg at $3.00 per kg 3.5 hours at $10.00 per hour 3 machine hours 6 labour hours Find the cost of 1,000 units of Pico. (Please show detailed workings and round up your answers to two decimal places.) (5 marks)