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Q2. Marshal Company operates with two production centres and three service centres. Costs have been allocated and apportioned to these centres as follows: Production Centres P1 P2 3,000 5.000 Service Centres SI S2 S3 $500 $700 $900 Information regarding how much work the service centres undertake for each other and for the production centres is as follows Production Centres Service Centres PI P2 SI S2 S3 By SI 40% 30% 10% By S2 50% 30% 10% 10% By S3 60% 40% Information concerning production requirements in the two production centres is as follows: PU P2 Units produced 1.800 units 2.300 units Machine hours 300 hours 4 hours Labour hours 100 UN 5 hours Required: (a) Using the reciprocal method calculate the total overheads in production centres PI & P2 after reapportionment of the service centre costs. (4 marks) (b) Using the most appropriate basis determine the overhead absorption rate for production centre P1. Briefly explain the reason for your chosen absorption basis. (1 mark) (Total marks = 5) Q3. Barry Co manufactures two products, Alpha & Beta, and is preparing its budge 2020. Both products are made by same grade of labor, grade A. The company curre 1000 units of Alpha and 1200 units of Beta in inventory, but 450 of these units have discovered to have deteriorated in quality and must therefore be scrapped. Budgeted Alpha are 3,000 units and of Beta 4,000 units, provided that the company maintains goods inventories at a level equal to three month's sales. Grade A labor was originally expected to produce one unit of Alpha in 3 hours and Beta in 4 hours, at an hourly rate of $4.50 per hour. In discussions with trade union however, it has been agreed that the hourly rate should be raised by 50 cents per hou that the times to produce Alpha and Beta are reduced by 20%. Required Prepare the production budget and direct labor budget for 2020. (Total Q4. Izabella, employed by Terrabiz Company, submitted the following labor data for the second week of November 2020: Units Hours Monday 390 8 Tuesday 350 8 470 8 Wednesday Thursday 320 8 Friday 340 8 Required: A schedule showing Izabella's weekly earnings, the effective hourly rate and the labor cost per unit, assuming a 100 percent bonus plan with a base wage of $8 per hour and a standard production rate of 40 units per hour. (Total marks = 3)