Geronimo uses a job order costing system with a plant wide overhead rate based on machine hours. At the beginning of the year, the company made the following estimates: Machine hours required to support estimated production 200,000 Fixed manufacturing overhead cost RM 800,000 Variable manufacturing overhead cost per machine-hour RMS Required: Compute the company's predetermined overhead rate b) During the year Job 555 was started and completed. The following information was available with respect to this job RM400 RM280 Direct materials requisitioned Direct labour Machine Hours Used Compute the total manufacturing cost assigned to Job 555 (4 marks) Explain factors that should be considered in selecting a base to be used in computing the predetermined overhead rate? (4 marks) *\ob-costing system can be applied in service firms like hospital and law firm". Discuss (6 marks) (Total: 20 marks) d) Question 2 Factory Tan has three production departments and two service departments Producti on Departm Service Departments Cutti Pack Cant Units Assembl ing Techni cian ging ec Factory Floor Areas Square Feet 300 250 150 SO Power Consumption (KWH) Kilo Watt Hours 0 20,000 10,000 Number of technical services Times of technical services 25 15 8 Number of Workers Number of stall IS 15 10 Average Inventory value 1000 250,00 0 Cost (RM) 150,000 The total production overhead for January 2016 is given as below; RM Factory rental 60,000 Electric power 25,000 Machines repair cost 35,000 10