Happy Life Ltd is a health resort that offers a range of programs for health-conscious managers. Managers who participate are provided with a tailored program, consisting of a series of events. A job costing system is used to calculate the cost of each program. The manager of Happy Life Ltd has designed the following programs for managers at the local water authority:

Program	Activities
A	Health check, 2-hour bushwalk, 30-minute yoga class, 15-minute massage.
B	Health check, 1-hour gym workout, 30-minute massage.
C	Health check, 2-hour bushwalk, 60-minute yoga class, 2-hour gym workout.

D	1-hour gym workout, 30-minute yoga class, 2-hour bushwalk.

The following labour costs and overheads apply:

Employee	Labour cost	Overhead chargeout rate applied
Bushwalking leader	$20per hour	$60 per hour 96 per hour
Massage therapist	$40 per hour	$100 per hour 168 per hour
Personal trainer (gym workout)	$40 per hour	$200per hour 288 per hour
Yoga class leader	$20 per hour	$120per hour 168 per hour
Medical doctor (for 30-minute health check)	$100 per hour	$180 366 per hour per hour

Required: Show all your workings. (i) Determine the total cost of each program. (ii) How might the resort managers use these total costs? (iii) Explain why there is a different overhead rate for each class of labour.

ivCalculate the price of each program using the chareout rate