KaYa Ltd manufactures furniture. The information below relates to a 1970's retro bookshelf that they make for boutique buyers. They have a medium sized factory, and the information below only relates to the production run making the bookcases. The production manager Jess, decided to run three separate production runs of bookcases during July-December 2021. There are two manufacturing overhead allocation rates that are assigned to production. One is using the cost-driver of labour-hours and the other uses kilowatts of electricity used in a production run. Manufacturing overhead costs in January-June 2021 were budgeted to be $102,250. The actual manufacturing overhead was $105,500. Allocated during that time was $108,250 of manufacturing overhead. For July - December 2021 it was estimated that manufacturing overhead per production run would total $7,360, there would be 50 labour hours per production run and that 15 machine hours would be used in each production run. Jess has budgeted that each time a machine runs for an hour it uses 100 kilowatts of electricity. The cost pool of total overhead is split between the two cost drivers equally. The staff that work on the production run are paid $20 per hour, and each book case uses $35 of wood. a) In January to June 2021, how much overhead was over or under-applied? What may have caused this? b) State at least three overhead costs that could be included in each overhead application rate cost pool. Explain if this would be a fixed or a variable cost and why it would be included in the electricity or labour cost pool. c) Calculate the predetermined overhead application rates for a single production run that would be used for absorption costing purposes during June-December 2021. Round your allocation rate to 2 decimal points. d) In production run 1, 75 bookcases were made. In this production run 48 labour hours were used, and the machines ran for a total of 13 hours. What is the cost per bookcase? Show all workings and round to 2 decimal points for your product cost. e) At the end of December, 12 tents from production run 1 were in ending inventory. There had been no opening inventory. Calculate the cost of the finished goods (on the balance sheet) and the Cost of Goods Sold (on the income Statement) for production run 1. f) What would you recommend that we sell each bookcase for? Show your calculations and explain why