nd you may be a victim of software counterfeiting. Avoid interruption and keep your files safe with genuine Office today. ' 1 . I 1 1 12 13 1 4 1 . 5 . 1 6 . 1 .7 . 1 . 8 . 1 . 9 . 1 10 . 1 . 11. 1 .12 . 1 .13 . 1 14. 1 .15 . 1 16 . . 17. 1 QUESTION Home Design makes a variety of art products that made from fabrics. The company supplies the product to retailers such as Kaison. Home Design uses a job-order costing system in which a pre- determined overhead rates are used to apply manufacturing overhead costs to jobs. The pre- determined overhead rate in the Cutting Department is based on machine hours, and the rate in the Painting Department is based on direct labor hours. At the beginning of year 2021, Home Design's management made the following estimates: Department Cutting Painting Direct labor hours 12,000 hours 60,000 hours Machine hours 70,000 hours 8,000 hours Direct material cost RM510,000 RM650,000 Direct labor cost RM130,000 RM420,000 Manufacturing overhead cost RM497,000 RM615,000 Job 820 was started on 1st August 2021 and completed on 10th August 2021. 50 units of product YZ were produced. Home Design's cost records show the following information concerning the job: Department Cutting Painting Direct labor hours 30 hours 84 hours Machine hours 110 hours 20 hours Direct material cost RM470 RM332 Direct labor cost RM325 RM588 Administrative expenses 15% of the manufacturing cost Selling and distribution expenses 10% of the manufacturing costRequired: a. Compute the pre-determined overhead rate used during the year in the Cutting Department and Painting Department. (4' marks) Prepare the job cost sheet for Job 820 by showing clearly prime cost, production cost and total cost for the job. Calculate cost per unit for product YZ. (9 marks) Compute the selling price of product YZ if the prot margin was set at 20% of the total cost. (2 marks) (1. At the end of the year 2021, the records of Home Design revealed the following actual cost and opening data for all jobs worked during the year. Department Cutting Painting Direct labor hours 10,000 hours 62,000 hours Machine hours 65,000 hours 9,000 hours Direct material cost RM430,000 RMGS0,000 Direct labor cost RM108,000 RM43 6,000 Manufacturing overhead cost RM570,000 RM750,000 What was the amount of under-absorbed or over-absorbed overhead in each department at the end ofthe year 2021? {8 marks) e. When would j ob-order costing be used instead of process costing? {2 marks)