Question 3 Bellagio Plc manufactures playground equipment. This information has been extracted from the budget after the departmental overheads have been calculated: Service Cost Centres Canteen Purchasing Production Cost Centres A B C Total Budget Data No. of employees No. Material Orders Direct Labour Hours Machine Hours 1 0 0 0 0 0 0 214534105 24 61RAR 3.240 2.450 6.100 1.200 720 160 2.080 1 Service Cost Centres Canteen Purchasing Production Cost Centres B TC A Total E Budget Overheads | 34.230 50.210 | 71,250 104,230 45,750 305,670 Required: (a) Reapportion the Service Department costs to calculate the overhead cost of each Production Department. Show your answer to the nearest . (7 marks) Calculate the Overhead Absorption Rate (OAR) for each of the production departments. Show your answer to 2 decimal places. (6 marks) Using the following information, calculate the total cost of Job 436. (c) Job Details: No. 436 Direct materials cost Direct labour hours Direct labour wage rate per hour Machine hours TA TB C 4,850 3,400 1,520 401125230 12.00 10.00 15.00 35 17 60 (d) (8 marks) I. Based on the information below, calculate the under or over recovery of overheads, assuming that the total overheads actually incurred in the year amounted to 315,450. (5 marks) A Actual Direct Labour Hours Actual Machine Hours 206 1.125 B 3,540 2.230 780202 ii. Explain the impact of the over/under absorption and why an under over absorption may arise at the end of the period. (9 marks) Total 35 marks