Revision First Class Degrees of Seating Ltd produces quality chairs for students in an industrial unit in the West of England. The company operates four departments, two production and two service departments. The direct labour rate per hour is 30 in the machining department and 20 in the Assembly. The indirect (overhead) costs of manufacture and other activity information are as follows: Production Departments Machining Assembly 120,000 80,000 Service Departments Canteen | Maintenance 40,000 60,000 300,000 Allocated overhead costs Unallocated overhead costs: Rent and rates Ordering costs Machine insurance Other property costs Statistical data: Floor area (Metres) Cost of machines Maintenance Hours Number of orders Total labour hours 80,000 40,000 30,000 50,000 250 50,000 750 150,000 1500 500,000 14,000 500 30,000 3500 300,000 6,000 200 50,000 150 150 Required: Using the data above, apportion the indirect costs to the four departments. Reapportion the service department costs to the two production departments. Firstly, reapportion the canteen costs; 50% to Machining, 40% Assembly and 10% Maintenance. Next apportion the maintenance department costs to the two production departments, using maintenance hours. Calculate the overhead absorption for the two production departments using labour hours