Digi-it (Pty) Ltd makes canvas panels that are used for digital print screens. A special order was received that must be filled over three months, i.e., May-July 2022. To make sure that production targets are met, and spending is managed, strict control measures must be applied. The following information is available: 1. The standard direct cost per panel is: R Cotton: 2.4m at R62.50 per metre 150 Wood: 1.8m at R100 per metre 180 Labour: 1.5 hours at R120 per hour 180 Direct cost per panel 510 2. Monthly budgeted overheads are as follows: Variable overheads R30 per unit. Fixed overheads R50 000 and comprise of the following: Insurance on equipment R 750 Depreciation and maintenance on equipment 4 500 Rental of building 12 750 Production supervisor's salary 30 000 Refreshments for employees 2000 50 000 The following information is used to allocate the budgeted overheads across its various departments: Departments Cost driver Production 1 Production 2 Service Total Number of employees 4 4 2 10 Value of equipment (R) 140 000 100 000 60 000 300 000 Floor space (m) 320 216 64 600 Labour hours 640 640 320 1 600 The costs of the service department are allocated to the production departments according to the number of employees and overhead allocation rates are based on labour hours. 3. Budgeted sales are as follows: May: 400 panels June: 400 panels July: 480 panels August: 240 panels 4. It is the company's policy to hold sufficient finished goods stocks and material to meet one quarter (4) of the forthcoming month's sales and production requirements. 5. The budgeted selling price is R960 per panel. 6. Opening stock at the beginning of May is as follows: Finished goods: 100 panels Cotton: 240 m Wood: 180 m 2.1 Prepare the following budgets: Production budget (May-July) a. b. Material usage budgets (May-July) C. Material purchases budgets (May-June) d. Labour budget (May - July) Source: Daniels, J. C. 2022. 2.2 Account for overheads as follows: a. Show the apportionment of the fixed overheads to the departments. Round off to the nearest Rand. b. C. Show the apportionment of the service department's costs to the production departments. Round off to the nearest Rand. Calculate the overhead allocation rates for each production department. Round off to two decimals. End of Section B