North Ltd uses a predetermined overhead rate in applying overheads to product costs, using direct labour costs for cost centre X and machine hours for cost centre Y. The following details the estimated forecasts for 2019. Cost Centre X 9,000 $ 200,000 1,000 $ 70,000 Direct labour hours Direct labour costs Machine hours Production overheads Cost Centre Y 3,500 70,000 10,000 $ 150,000 is Required: What is the predetermined overhead rate cost for centres X and Y? i) (2.5 Marks) ii) What would be the overhead rate costs if we used machine hours for X and direct labour hours for Y? (2.5 Marks) iii) In estimating the costs of products, manufactures usually identify direct material, direct labour and manufacturing overhead costs. What modifications may be made to these classifications in estimating service costs