QUESTION 1 [25 MARKS] iTechArt has been the partner of choice for fast-growing start-ups and innovative companies since 2002. providing fully dedicated engineering teams and custom software solutions. Headquartered in New York, the company has over 200 active clients worldwide, with 90% operating on the frontier of emerging technologies and markets. Their forte is agile dedicated teams of engineers who leverage time-tested big data development services to help clients manage data more effectively and efficiently. The company is divided into Divisions that provide services to each other and also to external clients. The performance of the Divisional Managers is measured against profit targets that are set by central management. During May 2022, the Consulting Division undertook a project for HP Enterprise. The agreed fee was NS15 500 and the costs excluding data processing were N$2 600. The data processing, which needed 200 hours of processing time, was carried out by the Data Processing (DP) division. An external agency could have been used to do the data processing, but the DP division had 200 chargeable skilled hours available in May 2022. The DP division provides data processing services to the other divisions and also to external customers. The budgeted costs of the DP division for the year ending 31 December 2022, which is divided into 12 equal monthly periods, are as follows: Variable costs NS Skilled labour (6000 hours worked) 120 000 Semi-skilled labour 96 000 Other processing costs 60 000 Fixed costs 240 000 These costs are recovered on the basis of chargeable skilled labour hours (data processing hours) which are budgeted to be 90%% of skilled labour hours worked. The DP division's external pricing policy is to add a 40% mark-up to its total budgeted cost per chargeable hour. During May 2022, actual labour costs incurred by the DP division were 10% higher than expected, but other costs were 5% lower than expected. REQUIRED MARKS Calculate the total transfer value that would have been charged by the DP 13 division to the Consulting division for the 200 hours on its HP Enterprise project, using the following bases: Actual variable cost. Standard variable cost + 40% mark-up. Market pricePrepare statements to show how the alternative values calculated in 12 b) answer to requirement (a) above would reflect in the performance measurement of the DP division and the Consulting division