Q2. Marshal Company operates with two production centres and three service centres. Costs have been allocated and apportioned to these centres as follows: St PI 3,000 $500 Production Centres Service Centres $2 $700 P2 5,000 $3 $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 Pl P2 SI $2 $3 By SI 40% 50% 10% By $2 50% 30% 10% 10% By $3 60% 40% Information concerning production requirements in the two production centres is as follows: Units produced Machine hours Labour hours Pl P2 1,800 units 2,300 units 3,500 hours 4,900 hours 2,400 hours 6,500 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 Pl. Briefly explain the reason for your chosen absorption basis. (1 mark) (Total marks-5)