A manufacturer is producing five types of job, each in a separate production department P, Q, R, S and T. In addition, there are two service departments F and G. Costs have been allocated to the departments as follows:

The expenses of the service departments are to be allocated between other departments as follows:

Dept F to Depts P 15 per cent; Q 10 per cent; S 40 per cent; T 20 per cent; G 15 per cent.

Dept G to Depts P 20 per cent; Q 15 per cent; R 30 per cent; S 25 per cent; T 10 per cent.

In departments R and T the job costing is to use an overhead rate per direct labour hour, while in the other production departments a machine hour rate will be used. The number of direct labour hours and machine hours per department is expected to be:

You are required to calculate:

(a) The overhead rates for departments R and T.

(b) The overhead rates for departments P, Q and S.

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Indirect labour Other expenses P £ 15,000 2,000 Production departments R £ Q £ 21,000 3,000 9,000 4,000 S £ 18,000 4,500 Service departments F £ 20,000 8,000 T £ 12,000 1,500 G £ 18,000 10,000