ICare Pte Ltd manufactures tables. The tables are produced in two departments - A and B. The operation in department A uses mainly machines and department B uses mainly skilled craftsmen to assemble and finish the final product. The annual budgeted machine and direct labour hours for department A are 60,000 and 14,000 respectively. For department B, they budgeted to use 30,000 machine and direct labour hours respectively. For September 2015, department A used 5,000 machine hours and 1, 116 direct labour hours. In the month, the total manufacturing overheads applied to jobs in department A amounted to $7, 500. For the same month, department B's usage of machine and direct labour hours were 2, 750 and 2, 500 respectively. The total manufacturing overheads applied to jobs in department B was $6, 250. Job 1012 was started and completed in September 2015, and incurred the following actual costs in the two departments: In total, Job 1012 incurred 950 machine hours and 220 direct labour hours in Department A, and 460 machine hours and 420 direct labour hours in Department B. The company uses a normal costing system and departmental overhead rates for applying overhead to production. Required: (a) Determine the budgeted manufacturing overhead rate for each department. (b) Prepare the necessary journal entries to describe and summarize September 2015 transactions in Department A for Job 1012. (c) Calculate the total normal product cost for Job 1012. If ICare wishes to make a 15% profit margin on Job 1012, how much should it charge for Job 1012? (Give your answer to the nearest dollar). (d) Discuss reasons why ICare prefers using a normal costing system to an actual costing system. Explain the merits of ICare using departmental overhead rates over a plant wide overhead rate