Question 3 a)Explain the terms overhead allocation, overhead apportionment and overhead absorption (3marks) b)Azu Company Limited is divided into four (4) cost centers. That is A, B, as production departments and Human Resource & Repairs as service departments The actual cost of a period is as follows A B HR Repairs GHS GHS GHS GHS Indirect materials 35 150 25 Maintenance wages 160 250 300 325 Other overheads as follows: GHS 1500 1800 300 Supervision Power Rent Repairs of plants Depreciation of plants Depreciation of building 1200 850 720 Repairs 500 The following information is available in respect of the departments: A B HR Area occupied in square feet 1500 1100 900 Number of employees 20 15 10 Value of plant 6000 4500 3000 HZ Power 10000 9000 6000 5 1500 5000 Required 1) Prepare an overhead analysis sheet by the most reasonable approach and estimate the overhead cost incurred in each cost center (6marks) il) Department A & B are production departments whereas HR & Repairs are there to service these production departments. Assume these two service departments do not render any service to each other. Using equitable and fair as appropriate as possible re-apportion the HR & Repairs overheads to the production departments (4marks) (Total 15marks)