12: You have been asked to suggest a method of deducing the full cost of various production orders of Petra Ltd. This method will be used as a basis for setting prices. The production orders vary greatly in size and nature from one to the next. The following information has been taken from the budget for the forthcoming financial year: Direct labour hours Machine hours Manufacturing costs: Power Direct materials Machine maintenance and repairs Factory heat and light Lubricants and cleaning materials Direct labor 100,000 hours 90,000 hours $40,000 $ 200,000 $ 38,000 $4,000 $ 6,000 $ 600,000 Depreciation: factory buildings $ 130,000 Depreciation: machinery $402,000 Indirect labor $100,000 $1,520,000 All direct labor is paid the same hourly rate. Required: 1. Determine two feasible pre-determined overhead rates for the year. 2. The company received Order 101. The cost sheet for the order are: Raw materials Direct labor hours Machine hours $5,000 4,000 hours 1,900 hours. Determine the cost for Order 101 using each of the rates calculated in (1)