QUESTION ONE A furnituremaking business manufactures quality furniture to customers' orders. It has three production departments and two services departments. Budgeted overhead costs for the coming year are as follows: Budgeted Costs [$1 Rent and Rates 12 800 Machine Insurance 6 000 Telephone Charges 3 200 Depreciation 18 000 Production supervisors' salaries 24 000 Heating 8: lighting 6 400 7'0 400 Three production departments A, B and C and the two service departments X and Y, are housed in the new premises, the details of which, together with other statistics and information, are given below. DEPARTMENTS Floor area A B C X Y Occupied (sqmetres) 3000 1800 600 600 400 Machine Value (35'000) 24 10 8 4 2 Budgeted Direct Labour Hours: 3200 1800 1000 Labour rates per hour (35) 3.80 3.50 3.40 3.00 3.00 Allocated overheads: Specic to each Deparunent ($000) 2.8 1.? 1.2 0.3 0.5 Service department X's Costs apportionment: 50% 25% 25% Service department Y's Costs apportionment: 20% 30% 50% RE UIRED: (a) Prepare a statement showing the overhead costs budgeted for each department, showing the basis of apportionment used in each case. Also calculated suitable overhead absorption rates for each department