Question 4 (22 marks) Helm Ltd. has two production departments and two service department and presented the following data for the period ending 30 June 2020. The production departments are forming and assembly and the service departments are maintenance and stores. The following budgeted overheads and budgeted activity levels have been provided: Forming $560,000 Overhead cost Labour hours Machine hours Maintenance Stores 65,000 80,000 Labour hours Machine hours Overhead cost Assembly $430,000 It has been estimated that service department usage is as follows: Forming Assembly 30% 55% 40% 50% 88,000 72,000 Forming 73,000 95,000 $680,000 Maintenance $250,000 Maintenance 10% Actual overheads and activity levels in the production departments were as follows: Assembly 89,000 64,000 $760,500 Stores $130,000 Stores 15% Required: (a) Use the simultaneous equation method to derive the re-allocated overheads to production departments and derive the overhead absorption rates for these departments. (14 marks) (b) Calculate the over/under absorption of overheads in each department. (4 marks) (c) Explain the terms 'overhead allocation' and 'overhead apportionment'. (4 marks)