answer only (b)

n Asarco Ltd is preparing its overhead budgets for an upcoming period. The company has three production departments; machining, finishing and assembly and two service departments, stores and inspection. The following data has been provided: Overhead cost Machine hours Machining Finishing Assembly Stores $48,000 Stores Requisition Number of inspections 6,000 Overhead is absorbed on a machine hour basis. It has been estimated that service department usage is as follows: Machining Finishing Assembly Stores Inspection 200 390 Inspection $50,500 $54,000 $48,100 $52,400 4,800 5,200 Required: (a) Define: 0 Overhead allocation (11) Overhead apportionment. 250 390 100 260 260 (1 mark) (1 mark) 450 (b) Prepare an overhead analysis sheet of the overhead costs to be charged to the production departments (machining, finishing and assembly), using the simultaneous equation method to apportion the service department costs to the production departments. (Work to the nearest $.) (15 marks)