Enneagon pty ltd is a manufacturing firm that produces custom office gifts according to customers orders. The company adopts the job order costing system, and manufacturing overhead is allocated to production at a predetermined overhead rate of 200 percent of direct material cost. According to the company's policy, any over or under allocated manufacturing overhead is written of to the cost of goods sold. The firm does not have any work-in-process at the beginning or the end of the quarter. Below is financial information for the 4th quarter of 2021:

Direct materials used $220,000

Direct labouur cost incurred $700,000

Indirect labour cost incurred $130,000

Indirect material used $80,000

Selling and admin expenses $600,000

Depreciation of factory building $100,000

depreciation of factory equipment $50,000

Insurance on factory and equipment $50,000

Electricity on factory $30,000

Finished goods inventory, October 1st $0

Finished goods inventory, December 31 $500,000

(a) Calculate the cost of goods manufactured for the company for the fourth quarter of 2021. Clearly show workings.

(b) Calculate the difference between the actual manufacturing overhead cost incurred and the the manufacturing cost allocated. Identify whether it is under-allocated or over allocated. Clearly show workings

(c) Calculate the adjusted cost of goods sold for the 4th quarter of 2021

(d) Provide one reason why firms use budgeted overhead allocation rate to allocate manufacturing overhead rather than use the actual manufacturing overhead cost and justify your answer

(e) The company considers if there are alternative adjustment methods for the over or under-allocated manufacturing overhead. Suggest one alternative adjustment for the company ito consider. In the context of Enneagon Pty Ltd, would it be better for the manager to follow the existing policy or to switch to the alternative adjustment method you suggest? Explain.