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Question A The following data relate to a manufacturing department for a period: Budgeted data for the coming year are as follows: Direct labour hours 60,000 hours Direct labour cost $110,000 Direct material cost $125,000 Production overhead $70,400 Actual data for the period are as follows: Direct labour hours 55,500 hours Direct labour cost $125,000 Direct material cost $150,000 Production overhead $67,800 Required: (1) Calculate the production overhead absorption rate predetermined for the period based on : i. Percentage of direct material cost; ii. Direct labour hours (2) Two pieces of furniture are to be manufactured for customers. Direct costs are as follows: Job 123 Job 124 Direct material $15,400 $10,800 Direct labour 210 hours Dept. A @$16/ hour:160 hours Dept. B @20/hour 120 hours Dept. A @$12/hour; 100 hours Dept. B @$18/hour 100 hours Dept. A@$14/hour; 140 hours Dept. B@$10/hour Selling and administrative overheads for each job are 10% of factory cost. Required: (b) Calculate the total costs of each job using all the two bases in question (1) above. (c) If the firm quotes prices to customers that reflect a required profit of 25 per cent on selling price, calculate the quoted selling price for each job