Costing Answer all questions and show your workings Question 1 : Function-based costing JIM Ltd has identified the following overhead costs and cost drivers for next year Expenses/cost Expected (cost) Selling cost 55,000 Administration Cost 35,000 Manufacturing overhead cost 38.000 Utilities cost (factory] 22,000 Cost Driver E( actual transactions) Direct Labour Hours 3500 Machine Hours 9.000 The following is the cost of 2 products made by the company: Product X Product Y Direct materials S4200 $3600 Direct Labor Hour Rate S29.00 $14.00 Units completed 250 210 DLH (hours) 460 320 Machine hours 185 160 Actual Costs 1500 5100 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 each product 5. Is the applied cost for each product under or over-applied? 6. What are the disadvantages of FBC and what solution has been offered as alternative