Question $2$

$(26$ marks$)$

Monica Enterprises is preparing its overhead budgets for a forthcoming period. The company has three production departments A$,$ B and C$,$ and two service departments $x$ and $Y.$

The following figures have been produced:

$\backslash$table$[[,$A$,$B$,$C$,$X$,$Y$],[$Overhead cost $($N$$),40000,42000,45000,40000,42000],[$Machine hours,$15000,12000,13000,,]]$

Overhead is absorbed on a machine hour basis.

It has been estimated that service department usage is as follows:

$\backslash$table$[[,$A$,$B$,$C$,$X$,$Y$],[$Department X$,20\%,30\%,10\%,,40\%$