Required (a) Prepare a statement showing the overhead cost budgeted for each department, showing the basis of apportionment used. Also calculate suitable overhead absorption rates. 19. A furniture making business manufactures quality furniture to customers' orders. It has three production departments and two service departments. Budgeted overhead costs for the coming year are as follows: Total () Rent and rates 12,800 Machine insurance 6.000 Telephone charges 3.200 Depreciation 18,000 Production supervisor's salaries 24,000 Heating and lighting 6.400 70,400 (b) Two pieces of furniture are to be manufactured for customers. Direct costs are as follows: Job 123 Job 124 Direct material 154 108 Direct labour 20 hours Dept A 16 hours Dept A 12 hours Dept B 10 hours Dept B 10 hours Dept C 14 hours Dept C Calculate the total costs of each job. The three production departments - A, B and C, and the two service departments - X and Y, are housed in the new premises, the details of which, together with other statistics and information, are given as follows: Departments A B Y Floor area occupied (sq. metres) 3,000 1,800 600 600 400 Machine value (000) 24 10 8 4 2 Direct labour hrs budgeted 3,200 1,800 1,000 Labour rates per hour 3.80 3.50 3.40 3 3 Allocated overheads: Specific to each department (000) 2.8 1.7 1.2 0.8 0.6 Service department X's costs Apportioned 50% 25% 25% Ser department Y's apportioned 20% 30% 50%