2. Assume that Masud Corporation uses departmental predetermined overhead rates. The Machining Department is allocated based on machine-bours and the Assembly Department is allocated based on direct labor-hours. How much manufacturing overhead cost would be applied to Job A? Job B? (Marks 3) 3. If Masud Corporation multiplies its job costs by a markup percentage to establish selling prices, how might plantwide overhead allocation adversely affect the company's pricing decisions? (Marks 2) Question 3 Pata Ltd operates a chain of shoe stores. The stores sell ten different styles of inexpensive men's shoes with identical unit costs and selling prices. A unit is defined as a pair of shoes. Each store has a store manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. Pata is trying to determine the desirability of opening another store, which is expected to have the following revenue and cost relationships Unit variable data Selling price Cost of shoes Sales commissions Total variable costs Per pair Tk 1500 975 75 Tk 1050 Required: Annual fixed costs Rent Salaries Advertising Other fixed costs Total fixed costs Tk 3,000,000 10,000,000 4,000,000 1,000,000 Tk 18,000,000 1. What is the annual breakeven point in (a) units sold, and (b) revenues? (Marks 2) 2. If sales commissions were discontinued for individual salespeople in favor of a Tk. 4,050,000 increase in fixed salaries, what would be the annual breakeven point in (a) units sold, and (b) revenues? (Marks 3)