Four: (10 marks) Florence Ltd is a manufacturing company with a financial year ending on 31 December, Year 1. The company manufactures wooden storage units for schools and colleges each job being planned to meet a customer's specific order. A predetermined overhead rate based upon direct labour hours is used to apply overhead to individual jobs. The flexible budget of overhead costs for the year is Fixed overhead Variable overhead $476,000 $3.25 per direct labour hour Normal activity for a full year is 120,000 direct labour hours. During the month of November, orders were begun and completed for three customers: Job A: Southern college Job B: Northern school Job C: Eastern university The following information has been extracted from the company's records in respect of the month of November: (i) Stocks at 1 November: Raw materials (ii) Purchases of raw materials: Raw materials $ 10,500 $ 135,000 (iii) Materials requisitioned for $ production: Job A: Southern college 45,000 Job B: Northern school 37,000 Job C: Eastern university 25,000 (iv) Factory direct-labour hours: hours Job A: Southern college 3,500 Job B: Northern school 3,000 Job C: Eastern university 2,000 (v) Labour costs: $ Direct-labour wages 51,000 (vi) Fixed overhead costs incurred Supervisors' salaries Costs of heat, light and depreciation of 6,000 buildings: Factory facilities Sales office 6,500 1,500 Administration office 1,000 9,000 (vii) Other factory costs Power 4,000 Repairs and maintenance Depreciation 1,500 1,500 7,000 Required: (a) Calculate the predetermined fixed overhead cost rate to be applied to individual jobs during Year 1. (1 mark) (b) Set out a job cost statement showing the total cost of each of the three jobs started and completed during the month of November. (9 marks)