Accounting for overhead

The information given below relates to the forthcoming period for a manufacturer’s operation. There are four cost centers of which two are involved in production and two are service cost centers. ...........................................................Production...............Service ....................................Total........Machining......Assembly......Canteen.........Stores ........................................$.................$....................$..................$...................$ Allocated costs...........70,022.........21,328.........29,928..........8,437..............10,329 Other costs Rent and rates.............4,641 Buildings insurance.....3,713 Electricity and gas.......6,800......................................Table 1 Plant depreciation.......28,390 Plant insurance.............8,517 ..................................._______ ......................Total......122,083 ..................................._______ Area occupied (square metres)......7,735.............6,188..........1,547..............3,094 Plant at cost ($’000)........................1,845..............852...............---.................142 Number of employees.....................600.................300...............30..................70 Machine hours................................27,200.............800..............---...................--- Direct labor hours...........................6,800............18,000............---...................--- Number of stores requisitions.......27,400.............3,400.............---..................--- a. Complete the above table 1 by using the most appropriate base. My answer: ......................................Total........Machining......Assembly......Canteen.........Stores Allocated costs...............70,022.........21,328.........29,928.........8,437...........10,329 Rent and rates................4,641.............1934...........1547............387...............773 Buildings insurance.........3,713............1547...........1238............309................619 Electricity and gas...........6,800............2833...........2267............567...............1133 --------------------------------- Plant depreciation..........28,390..........18,450...........8,520..........---..............1,420 Plant insurance................8,517..........5535.............2,556............---................426 ................................. ............................Total.......122,083......51,627.........46,056.........9,700.........14,700 Apportion Canteen................................6000............3000..........(9,700)...........700 Apportion Stores..................................13700...........1700.........---................(15400) ---------------------------------- ............................Total..........................71,327.........50,756 My questions: is it correct? (b). Use this information to calculate a production overhead absorption rate for Machining department and for Assembly department based on machine hours and labor hours respectively. Round off to nearest dollars for the above table. My questions: Does the Allocated costs in the question means the fixed overhead? In the textbook, there are material cost, labour cost etc but there is none here, how could I calculate (b)? Thanks a lot for your help.