Question I Top Hats Ltd manufactures all types of custom-made premium head wears and hats for all types of occasions. It uses a job-costing system and applies manufacturing overhead on the basis of machine hours. The company's manufacturing overhead budget for the year totalled S I It has a maximum capacity of 400,000 machine hours. However, it is budgeted to bc able to use 800/0 of this capacity during this period. On 31 July, Top Hats Ltd has the following balances: Work in process inventory Job number 211 Job number 212 Raw materials inv entory F inished goods inventory Job number 210 In August, thc following occurred: S22,500 SIO,775 $16,700 S28,750 $6,050 Sl,275 $750 $750 (2) (3) (4) Raw materials purchased on credit Raw materials requisitions Job number 211 Job number 212 Job number 213 Indirect materials (used in production) Machine hours, direct labour hours and wages for factory employees Job number Machine hours Labour hours Wages 212 213 3,000 1,100 4,875 2.900 3.575 750 Indirect labour Other incurred: Depreciation machineries Depreciation - delivery vans Salaries. production Salaries. sales and administration Other factory costs Other selling and administration costs S30,600 S50,125 $7,350 ssoo S12.500 $8,750 S19.500 S12.ooo