At the beginning of the year, Izati Sdn Bhd (ISB) estimted the following:

Finishing DptMachiningDpt

OverheadRM45,000RM50,000

Direct labor hours15,00010,000

Machine hours30,00025,000

ISB uses departmental overhead rates. In the finishing department, overhead is applied on the basis of direct labour hours. In the machining department, overhead is applied on the basis of machine hours. Actual data for the month of March are as follows:

Finishing Dpt Machining Dpt

OverheadRM29,000 RM34,000

Direct labor hours10,0002,000

Machine hours6,8005,000

During the year, several jobs were completed.Data pertaining to one such job, Job 12 are as follows:

Direct materialsRM200

Direct labour cost:

Finishing (10 hours @ RM5 per hour)RM50

Machining (25 hours @ RM3 per hour)RM75

Machine hours used:

Finishing 30

Machining20

Required:

a)Calculate the predetermined overhead rates for the assembly and testing departments.(two decimal point).(3 marks)

b)Computeproduct cost for Job 12.

(5 marks)

c)Recalculate the product cost for Job 12 using blanket overhead rate (use machine hours).(7 marks)