QUESTION THREE [25] Labson Limited has 3 production centres (Machine centre X, Machine centre Y and an Assembly centre) and 2 service centres (Materials procurement and General manufacturing support). The annual overhead costs are as follows The following information is also provided: The following information is also provided: Total materials issues (both direct and indirect) to the production centres are as follows: Total materials issues (both direct and indirect) to the production centres are as follows: Secondary allocation: The value of materials issued is used as a basis for the materials procurement cost centre and direct labour hours as the basis for the general manufacturing support cost centre. Product A is produced in batches of 100 . Each unit spends 6 hours in the Machine centre X,12 hours in Machine centre Y and 12 hours in the Assembly centre. Use the information provided above to answer the following questions: 3.1 Calculate the allocation rate for each of the production centres, based on machine hours for Machine centres X and Y and direct labour hours for Assembly. (20) 3.2 Calculate the overheads applied to each batch of Product A