Question 3 Smart Tools Limited is manufacturing company which uses two production departments (Machining and Finishing) to make its products. It also has two service departments (Canteen and Maintenance). Shown below are next year's budgeted manufacturing overhead costs and certain other additional data: Budgeted overheads Rent and rates Insurance and depreciation of equipment Heating and light Maintenance department salary Supervisors' salaries Total overheads 374,000 65,600 286,000 18,230 184,500 928,330 Additional data: Machining Finishing Canteen Maintenance Book value of equipment () 240,000 80,000 Number of employees 20 Floor area (square meters) 1,820 16 1,300 5 1,144 936 Required: You are given the following additional information regarding budgeted production of the three products (A, B, C) made by Smart Tools Limited for the year: Product A Product B Product C Production 3,000 units 2,500 units 1,600 units Direct materials 6 per unit 8 per unit 9 per unit Dir labour: Machining Department 16 per unit 12 per unit 8 per unit Direct labour: Finishing Department 12 per unit 24 per unit 8 per unit Machine hours per unit 5 hours 4 hours 6 hours All direct labour is paid 8 per hour. All the machine hours take place in the machining department. (c) Calculate the total number of budgeted machine hours to be used during the year to produce the full production of all 3 products and use this, together with relevant information from your answer to part (b), to calculate an overhead absorption rate based on machine hours for the machining department (give your answer to 2 decimal places) (d) Calculate an overhead absorption rate based on direct labour hours for the finishing department (give your answer to 2 decimal places) (e) Using your answer to part (c) and (d) above calculate the budgeted manufacturing overhead cost per unit of Product A (give your answer to 2 decimal places) (f) Calculate the total budgeted manufacturing cost per unit of product A (give your answer to 2 decimal places)