Destine products uses a job costing system in their Denver Plant. The plant has two departments A and B. The Plant has two direct cost categories (direct material and direct manufacturing labor) and two manufacturing cost pools.In department A overhead allocated to Jobs on actual machine hours while in Department B overhead allocated to actual jobs based on direct manufacturing labor. At the beginning of the year 2021 the Company's management made the following budget prediction

Budget for 2021

	A	B
Direct manufacturing labor cost	Sh. 1,400,000	Sh, 2.000,000
Manufact6uring overheads	Sh. 1,800,000	Sh. 3,600.000
Direct Manufacturing Labor hours	100,000	200,000s
Machine hours	50,000	200,000

Compute the budgeted overhead rates for both departments A and B

(5 Marks)

1. During the month of February 2021, the job cost records for job 494 contained the following

Actual cost for Job 494

	A	B
Direct Material	Sh. 45,000	Sh. 70,000
Direct Manufacturing Labor cost	Sh. 14,000	Sh.15,000
Direct Manufacturing Labor Hours	1,000	1500
Machine Hours	2,000	1000

1. Compute the total overhead cost allocated to Job 494 (5 Marks)
2. If Job No. 494 consists of 200 units of product, what is the unit cost of each unit?

(5 Marks)