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: Residential Maintenance Catering 2 300 Housekeeping 2 700 Total 7 300 Consumable 1 400 900 material Saff costs 1 600 1 300 1 100 500 4 500 Rent and rates 4 440 Content 1 680 insurance Heating & 2 160 lighting Depreciation 4 440 Total 24 520 The following information is also available Residential Housekeeping Maintenance Total Catering 1 620 Area (m) 3 300 720 3 60 6 000 Value of 420 000 300 000 90 000 90 000 900 000 equipment Number of 24 24 18 6 72 employees 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: 3 050 guest nights with overheads of R13 200 b. Catering: 15 250 meals with overheads of R9 800. NB: Round off cost per unit to two decimals and total amounts to the nearest value