Fabien Ltd - continued: Trading (production and sales): You should assume that today is Monday 23rd November 2020. Sales: The company has the following sales orders to be delivered during December 2020. Order/product. Order 110 order 1192Order Sky Sun *Moon Quantity to be delivered sales in its 650 950 1150 Selling price per unit 35 155 Production: The production schedule for December 2020 (product quantities and production resources requirement) is shown below. Order product Order 1101 order 11ezorder 1105 "Sun *M Finished grads Quantity to be produced 1.000 Note A: December 2020 there will be ne opening inventory of finished goods Revurces requirement for production Direct costs variable costs) Order/product-Order 170 Order 1192 Order 1783 Sun Men' 1440 6720 Machining department incremental materials cod Direct labour hours (total) Machine hos al 102 1,150 10 72 14 hours 1863 221 1,740 Painting department Incrementaleals.com Direct labour hours Machine how total) 144 114 282292 0345 hours 30204 114 60 Assembly department incrementarials Direct labore E1,150 216 E1150 251 7201 3.000 2017 Production: The production schedule for December 2020 (product quantities and production resources requirement) is shown below. Order/product. Order 1101 Order 1102|Order 1103 "Moon Finished goods 790 1.000 1.320 Quantity to be produced Note: At 1" December 2020 there will be no opening inventory of finished goods Resources requirement for production: Direct costs (variable costs) Order/product. Order 1701 Order 1702 Order 1103 Sky "Sun" "Moon Machining department: Incremental materials cost Direct labour hours (total) Machine hours (total) 1,440 10 720 144 221 Totals 1.150 3010 72318 hours 144 551 hours 186 [864 288 2.892 Painting department Incremental materials cost Direct labour hours (total) Machine hours (total) 1,740 114 66 90348 hours 30 204 hound 1,150 Assembly department incremental materials cost Direct labour hours (total) Machine hours (total) 216 1,150 258 721 E720 3,020 204678 hours 102 214 hours 60 Fabien Ltd - continued: Fixed indirect production overheads: Indirect production overheads are fixed (unaffected by production activity levels) at 41,500 per month. This value has been allocated and apportioned to the 3 production departments as follows: 1:29 u-central-1-prod-fleet01-xythos.s3.eu-central-1.amazonaws.com Direct labour hours (total) 216 258 204678 hours Machine hours (total) 102 234 hours 60 Fabien Ltd - continued: Fixed indirect production overheads: Indirect production overheads are fixed (unaffected by production activity levels) at 41,500 per month. This value has been allocated and apportioned to the 3 production departments as follows: Production department: Machining Painting Assembly Total Fixed costs (allocation / apportionment 19,400 68.600 13,500 641.500 Bases for absorption: Machining department = Machine hours . Painting department = Direct labour hours Assembly department = Direct labour hours Note: The quantity for absorption basis (for each production department) should be established using the total departmental resources requirement shown in the tables above. Required: Task 2: Prepare (for each product and in total) the following planned values for December 2020: .Prime costs 11 Marks 6. Total (full) costs of production 14 Marks c. Finished goods closing inventories / cost of sales 7 Marks Gross profits and gross profit margins) 3 Marks Note to task 2: The requirement of task 2 should be established using an absorption costing system (as described in the production process flowchart) The total task 2 mark above, includes marks allocated to short descriptive notes to workings (