[25] QUESTION 1 Duvani Limited uses a job order costing system with a predetermined overhead absorption rate based on machine hours. The company keeps only one set of records for cost and financial transactions. At the beginning of 20x9 the company estimated its manufacturing overheads for the year at R100 000 and machine hours at 16 000. The following information on the jobs worked on during December 20X9 is available: Job 67 Job 69 Job 63 Work-in-process on 1 December 20X9 R12 000 R5 000 R3 000 Costs incurred during December 20X9: Material requisitioned from stores Wages according to time sheet Production activity: machine hours R2 400 R2 000 600 R1 600 R800 400 R1 300 R500 200 On 31 December only Job 67 was completed. Actual manufacturing overheads incurred during December 20X9 were R10 000. Required: a) Compute the manufacturing overhead absorption rate for 20x9. (3) b) Compute the total cost of each job. (12) c) Compute the amount of under- or over absorbed overheads for December 20X9