Gina has a job order and the following has been recorded on the job cost sheet

DIrect material 70000

Direct labour hours 2000 hrs

Direct labour wage rate 45

machine hours 800 hours

Number of units completed 1000

manufacturing overhead costs are applied on basis of machine hours and the predetermined overhead rate is 20 per machine hour. management is considering wether this job order is profitable or not and how does the order fare compared to the industry benchmark

required

a compute the unit product cost that would appear on yhe job cost sheet for this job 2marks

b using a mark up percentage 30% of the full product cost , how much profit /loss would this job make 2 marks

c considering the industry benchmark of manufacturing overhead for similar jobsis 70% of direct labour , identify whether this job has a manufacting overhead lower or higher than similar job using the industry benchmark .briefly expalain what would cause the difference (6marks)