The following information on ABC company's budgeted operating costs is provided below. The company has three production and two service departments. In USD 000 Service departments Personnel Maintenance | Total Finishing dep 2000 1,500 10,000 10,500 300 1500 3800 7,600 Production departments Weaving Proofing dep dep Direct wages 2500 5500 Direct 7000 2000 materials Indirect 1,100 900 materials and wages Power 5200 1000 Rent Factory supervision Machine insurance 200 100 800 7300 8000 10,000 2,400 Additional information is provided below Personnel Maintenance | Total Weaving dep 12,000 1,600,000 Proofing dep | Finishing dep 27,000 6,000 400,000 400,000 12,000 3,000 60,000 2,400,000 1,200,000 1,800,000 600,000 3,600,000 Floor area Machine hours Direct labour hours Number of employees Net book value of equipment 600 1,000 400 100 400 2,500 USD 4 mln USD 1 mln USD 1 mln USD 6 mln Instructions: 1. Calculate the total overhead to be absorbed by each production department using step-down method 2. Determine the budgeted overhead absorption rates for each production department using following methods: a. Machine hour rate in the weaving department b. A direct labour hour in proofing department c. Another suitable method for finishing department