Question 3 A furniture making business manufactures quality furniture to customers' orders. Budgeted overhead costs for the coming year are as follows: Total RM Rent and Rates 15,000 Machine insurance 8,000 Telephone charges 4,500 Depreciation 20,000 Production Supervisors' salaries 25,000 Heating and Lighting 6,500 The company has three production departments - ALPHA, BETA and CHROME - and two service departments - XEROX and YOLEX. Relevant statistics and information are given below: Floor area occupied (sq meters) Machine value (RM000's) Direct Labour hours budgeted ALPHA 3500 30 3500 BETA 2000 15 Departments CHROME YOLEX 800 800 10 5 1500 XEROX 500 5 2000 20% 30% Service Dept X costs apportioned Service Dept Y costs apportioned 50% 30% 40% 30% Required: Prepare a statement showing the overhead cost budgeted for each department, indicating the basis of apportionment used. Calculate also suitable overhead absorption rates