ACC 320 Costing Accounting Answer all questions and show your workings Question : Function-based costing JIM Lad has identified the following overhead costs and cost drivers for next year Expenses cost Expected cost) $ Selling cost 25,000 Administration Cost 55.000 Manufacturing overhead cost 38,000 Utilities cost store 12.000 Cost Drivers Product X Machine Hours Product Y Direct Labour leurs Direct Labour Hours 14.000 hours Machine Hours 15.000 hours The following is the cost of 2 products made by the company, Product X Product Y Direct materials $4200 S2600 Direct Labor Hour Rate S10.50 $16.50 Units completed 150 DLH (hours) 560 420 Machine hours 660 2:40 Actual Cost S4200 S2100 100 REQUIRED 1. Calculate the Predetermined Rate [PR] for product X using machine hours and product Y using direct labour hours 2. What is the applied cost assigned to product X and product Y? 3. Calculate the total product cost using FBC for both products 4. Calculate the unit cost for cach product 5. Is the applied cost for product X under or over-applied? What effort this will have on the cost of goods sold and the Net income? 6. Is the applied cost for product Yundet or over-applied! What effect this will have on the cost of goods sold and the Net income [30 marks] Question 2