Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E ( cost) $ Setups cost 90,000 Ordering Cost 50,000 Maintenance cost 150,000 Power 30,000 Cost Driver E( actual transactions) Number of setups 400 Number of orders 4,000 Machine Hours 25,000 Kilowatt hours 75,000 The following is one of the jobs completed during the year Job 700 Job 701 Direct materials $1200 $600 Direct Labor $900 $400 Units completed 250 100 DLH 40 20 Number of setups 2 1 Number of orders 10 4 Machine hours 50 40 Kilowatt hours 60 25 Actual overhead $2500 $1250 The companys practical activity is 9000 DHL

REQUIRED Part A 1. Calculate the predetermined rate for Job 700 using FBC based on DHL for each job 2. Calculate total product cost using FBC based on DHL for job 700 3. Calculate the unit cost of the job 4. Is the overhead over-applied or under-applied Part B 1. Calculate the PR for job 701 using machine hours 2. Calculate the total product cost using FBC based on machine hours for job 701 3. Calculate the unit cost 4. Is the overhead under or over-applied?