TASK 1 COMPDECK QSM PLC manufactures bespoke computer desks in three production departments: Manufacturing, Finishing, and Packaging. The company also has three service departments: Quality Control, Stores and Maintenance. The company uses absorption costing system to analyse product costs and you have been supplied with following information in relation to the production departments. Packaging L Total 12 30 Base Number of employees Machinery value (s) Factory area (square metres) Factory volume (cubic metres) Water usage (litres) Machine hours Manufacturing Finishing 108 75,000 50,000 200 230 20,000 30,000 10,000 15,000 70,000 50,000 55,000 320 40,000 8,000 20,000 180,000 750 90,000 33,000 140,000 (a) Explain what the absorption costing system is. (3 marks) (b) If COMDECK QSM PLC estimates to spend 60,000 for heating the factory during the year 2020, calculate the heating cost that should be allocated to each of the three production departments