Question 4 (25 marks) The Operations Manager of Bermuda Bauxite Mining provided the following budgeted information for three production departments (A, B and C) and two service departments (Stores and Maintenance). The following data below are the budgeted data for the same period A B C Maintenance Stores Indirect Labour $1,265,625 $632,813 $1,054,688 $337,500 $421,875 Indirect Materials $253,125 $210,938 $632,813 $506,250 $590,625 Other Expenses $675,000 $843,750 $421,875 $168,750 $675,000 Labour hours $131,250 $67,500 $168,750 Machine hours 584,375 $126,563 $210,938 Below are the actual overhead and actual activities for the three (3) production departments at General's Ltd for the year ended August 2018. A B C Indirect Labour $1,265,625 $168,750 $253,125 Indirect Materials $421,875 $253,125 $590,625 Other Expenses $843,750 $1,265,625 $1,054,688 Labour hours $171,875 $84,375 $210,938 Machine hours $84,375 $168,750 $253,125 Overhead is absorbed based on how intensive the individual departments are considered. It has been estimated that service department usage is as follows: A B C Maintenance Stores Maintenance 20% 40% 25% 15% Stores 50% 35% 10% 5% Required: a. Prepare a schedule to apportion the notional service cost to production and the total overheads for the production departments after apportionment. Hint: use simultaneous equations to derive the notional values. [19 marks] b. Calculate the overhead absorbed in each department. [3 marks] c. Calculate the under/over absorbed overheads for each department. [3 marks]