The following information relates to the production departments of Gadd Ltd:

The factory overheads for the year ended 31 December 2003 were:

(a) Prepare an overhead apportionment schedule apportioning the factory overheads to the appropriate departments. Use the headings shown:

(b) Calculate the overhead absorption rates for each production department. State the bases used and give one reason for your choice.

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Direct machine hours Direct labour hours Cost of equipment Floor area m Welding Department 3,000 15,000 20,000 4,000 Processing Department 100,000 8,000 100,000 12,000