Groups 3 & 4 The information below concerns the budgeted activity of Redstone Manufacturing Company Ltd for the coming year. There are two production departments (Milling and Packaging) and two service departments (Maintenance and Personnel). Indirect labour Indirect Materials Milling 120,000 Packaging Maintenance Personnel 140,000 50,000 30,000 24,000 32,000 6,000 20,000 Heating and lighting 24 000 Rent and rates 36 000 Depreciation 60,000 Supervision 48 000 Power 40,000 The following additional information is also available: Milling Packaging Maintenance Personnel Floor area in sq. metres 20,000 24 000 10,000 6000 Book value of machinery ($) 150,000 120,000 20,000 10,000 Number of employees 40 30 10 5 Kilowatt hours 9,000 8,000 2,000 1,000 Maintenance hours 1,000 1,000 The Milling department is machine intensive, whereas the Packaging department is labour intensive. There are 12,640 machine hours budgeted for the milling department and 15,700 labour hours are budgeted for the packaging department for the year ending 31 December 2018. REQUIRED: (a) Prepare overhead analysis sheets showing the allocation and apportionment of overheads to the four cost centres. (b) Re-apportion the service departments using the step-down method (15 marks) (7 marks) (c) Calculate the overhead absorption rates for the two production departments