The Vaal Residence hotel is developing a cost accounting system. Initially it has been decided to create four cost centres: Residential and Catering deals directly with customers, Housekeeping and Maintenance are internal service cost centres. The following overheads details have been estimated for the next period: Consumable Residential 1400 Catering 2300 Housekeeping 2 700 Maintenance 900 Total 7 300 material Saff costs 1600 1300 1100 500 4 500 Rent and rates 4 440 Content 1680 insurance Heating & 2160 lighting Depreciation Total 4440 24 520 The following information is also available Residential Catering Housekeeping Maintenance Total Area (m) 3300 1620 720 360 6000 Value of equipment 420 000 300 000 90 000 90 000 900 000 Number of employees 24 24 18 6 72 In the period it is estimated that there will be 2 800 guest-nights and 16 000 meals will be served. Housekeeping works 70% for residential and 30% for Catering, and Maintenance works 20% for housekeeping, 30% for Catering and 50% for Residential. Required: 1. Prepare overheads statement showing clearly allocations and apportionments to each department. 2. Calculate appropriate overheads absorption rate for Residential and Catering. 3. Calculate the under or over-absorption overheads if actual results were as follows: a. Residential: 3050 guest nights with overheads of R13 200 b. Catering: 15250 meals with overheads of R9 800. NB: Round off cost per unit to two decimals and total amounts to the nearest value.