Case study 1. Sung Industries manufactures tracking devices. They use a job order costing system. Manufacturing overheads are absorbed based on direct labor hours. The budgeted figures in respect of manufacturing overheads for January 20x2 are as follows: Department B Department C Manufacturing overheads R900 000.00 R1 540 000.00 Direct Labor Hours 22500 28000 During the first week of January 20x2 the following prime cost were incurred on Job D45: Direct Material 159 kilograms @ R848.00 per kilogram (issued by department B) Direct Labor Department B 45 hours @ R87.50 per hour Department C 89.6 hours @ R128.80 per hour 2