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Question 3 Waterways has two major public park projects to provide with irrigation in one of its service locations this month. The company uses a normal costing system. Job 357 and Job K52 involve 15 acres of landscaped terrain which will require special- order sprinkler heads to meet the specifications of the project. Using a job cost system to produce these parts, the following events occurred during December . Raw materials were requisitioned from the company's inventory on December 2 for 5.202: on December 8 for 1.200; and on December 14 for 3,600. In each instance, two-thirds (2/3) of these materials were for J57 and the rest for K52. For these two projects a total amount of 18 Direct labour hours were required. All the workers were paid 16.50 per hour. The 18 DLHs were incurred on the following dates December 3. December 9. and December 15. On each of those days, 6 labor hours were spent on these jobs, two-thirds (2/3) for J57 and the rest for K52. The manufacturing overhead costs are allocated based on machine hours. The total estimated machine hour use for the year is 2.112 hours and the estimated manufacturing overhead costs are 840,576 for the year. The Question Continues TURN OVER The machines were used by workers on projects K52 and J57 on December 3. 9. and 15. Six machine hours were used for project K52 (2 each day), and 8.5 machine hours were used for project 357 (2.5 the first day and 3 each of the other days) The actual MO costs incurred for the two jobs were $7,235. Both of these special orders were completed on December 15, producing 244 sprinkler heads for J57 and 142 sprinkler heads for K52. Required: a) Compute the total cost for each manufacturing special order for each job. (Round unit cost to nearest cent.) (65%) b) Compute the manufacturing overhead variance and state whether it has been under/over applied. (5%) c) Explain why would Waterways choose machine hours as the cost driver for the manufacturing overhead rather than direct labor cost. (10%) d) Identify the major accounts used in a job order cost system. Briefly explain how manufacturing costs flow through these accounts. In your answer include the inventory accounts. (20%)