QUESTION 2 Riverdale Ltd. produces and sells "Clearwater". The following information is an extract from the production budget: Production (units) Mar 30,000 Apr 32,000 May 35,000 Riverdale Ltd. pays its employees $15 per direct labour hour. The company pays 70% of the direct labour costs in the month of production and 30% in the month following the production. Each unit of Clearwater requires 2.5 direct labour hours to produce. Required: (a) Compute the following (show workings using a direct labour budget or other means): (i) Budgeted Direct labour hours for the month of Apr 2022. (ii) Budgeted Direct labour cost ($) for the month of May 2022. (iii) Expected Total cash payments for the month of Apr 2022. (iv) Expected Total cash payments for the month of May 2022. (1.5 marks) (2.5 marks) (3.5 marks) (2.5 marks) (b) Assume that the management signed a rental agreement to pay factory rent of $90,000 per quarter. The company pays the factory manager a salary of $84,000 per annum. The company estimates that plant electricity is expected to be $9.00 per unit produced. Compute the following (show workings using a manufacturing overhead budget or other means): (i) Budgeted Variable Overhead for the month Apr 2022. (ii) Budgeted Total Overhead for the month of May 2022. (1.5 marks) (3.5 marks)