2- Question la) Divine Products uses a job-costing system for its units, which pass from the Machining Assembly Department, to finished-goods inventory. The Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company uses machine hours to apply manufacturing overhead to products in the Machining Department, and direct labour cost to apply manufacturing overhead to products in the Assembly Department. The following information relates to the Machining Department for the year just ended: Budgeted manufacturing overhead RM12,000,000 RM12,142,000 800,000 hours 794,000 hours Budgeted machine hours Actual machine hours The Machining Department data that follow pertain to job no. 775, the only job in production at year-end. _ Direct materials Direct labour cost Machine hours RM125,000 RM61,800 PoHR Bdgst 550 hours i. Calculate the predetermined overhead rate that is used in the Machining Department. Ott 00o,0 Required (2 marks) ii. Compute the cost of the Machining Department's year-end work-in-process inventory (3 marks) iii. Determine the amount that overhead was under- or overapplied during the year in the 3 marks) iv. Based on (iii) above, if Divine disposes of the Machining Department's under- or Machining Department. Indicate whether it is overapplied or underapplied. overapplied overhead as an adjustment to Cost of Goods Sold, would the company's Cost-of-Goods-Sold account increase or decrease? Explain. 2 marks) Comment on the appropriateness of direct labor cost to apply manufacturing overhead in the Assembly Department. v. (2 marks)