Question One (15 marks) A company makes a range of products with total budgeted manufacturing overheads of 973, 560F incurred in three production departments (A, B, C) and one service department. Departm ent A has 10 direct employees who each work 37 hours per week. Department B has five mac hines each of which is operated for 24 hours per week. Department Cis expected to produce 148,000 units of final product in the budget period. The company will operate for 48 weeks in the budget period. Budgeted overheads incurred directly by each department are: Production Department A 261,745Frs Production Department B 226,120Frs Production Department C 93,890Frs Service Department D 53,305Frs The balance of budgeted overheads are apportioned to departments as follows: Production Department A 40% Production Department B 35% Production Department C 20% Service Department D 5% Service Department overheads are apportioned equally to each production department. Required: a) Calculate an appropriate predetermined overhead absorption rate in each production department (10marks) b) Calculate the manufacturing overhead cost per unit of finished product in a batch of 100 units which take direct labour hours in department A and three machine hours in L department B to produce. (Smks) Question Two(15 marks) One of the budget centres of the ABC Manufacturing Company is the boiler house which rais es and supplies steam for all manufacturing budget centres in the company. The foreman of one of the manufacturing budget centres has complained to the works manager that in his a ccounts he is charged at different rates each month per CFA frs of steam used. The highest r ates have been as much as 20% above the lowest. Required: Explain in areport to the works Manager: a) How such different rates per CFA frs of steam can be incurred in the boiler house.(5m ks) b) Why being charged at different rates could present a difficulty to the foreman of the manufacturing budget centre(5mks) c) What procedure, as cost accountant of the ABC Manufacturing Company, you would propose tointall to remedy this position (5mks)