Hi,sirs.Could you please help to solve this tutorial question?

XYZ company has 3 production departments. The company uses a plant-wide rate to allocate overhead costs; it uses direct wages cost as the activity base (or cost driver). You are given production information for 201?: Production Dept Direct wages Direct labour Machine hours Production (5) hours overhead costs ($) 25,000 10,000 40,000 120,000 _ 100,000 50,000 10,000 30,000 25.000 25.000 75300 Total 150,000 85,000 50,000 225,000 During 2011', the rm incurred the following costs and consumed the following resources to complete a particular contract for client G: Production Dept Direct material Direct wages Direct labour Machine hours ($) ($) hours A 120 100 20 40 B 60 60 40 10 C 10 10 10 - After adding production overhead to prime cost, gross prot is ascertained by increasing production cost by one-third. Reguired: a) Calculate the overhead plant-wide rate. (1 mark) b) Apply the plant-wide rate to the contract undertaken for client G. Calculate the full production cost of this contract. (2 marks) c) Calculate departmental overhead rates. (3 marks) d) For each of the departmental overhead rates calculated in (c) above, explain (in detail) why you chose a particular activity base (or cost driver). You must provide reasons for each overhead rate calculated. You must alsojustify your choice of activity base (or cost driver) by relating each driver back to the case-facts. You must not make generalised statements in justifying your choices. (4 marks) e) Apply the departmental overhead rates to the contract undertaken for client G. Calculate the full cost of this contract. (4 marks) f) Compare the costs gures in (b) and (e) for the contract for client G. Explain the difference in cost gures: you must explain how well the overhead rates reect the ElE overhead costs incurred and consumed. Identify the overhead rate that better allocates overhead costs. (8 marks) 9) What are the challenges faced when allocating overhead costs to products. Can these challenges identied be overcome by using Activity Based Costing? Explain using your own words. Your answer should INCLUDE an explanation of the implications of the hierarchy of overhead costs and activities. (8 marks)