Open-book Exam. Laptop allowed. Use of internet is not allowed. Attempt all the questions. Show all the calculations clearly. The clarity of presentation will also be considered in evaluation David & Company has two departments Milling and Assembly. The company uses a job- order cost system and computes a predetermined overhead rate in each department. The Milling Department bases its rate on machine-hours, and the Assembly Department bases its rate on direct labour cost. At the beginning of the year, the company made the following budget estimates: Department Milling Assembly Direct labour-hours 8,000 75,000 Machine-hours 60,000 3,000 Manufacturing overhead cost (Rs) $10,000 800,000 Direct labour cost (Rs) 72,000 640,000 Required: (a) Compute the predetermined overhead rate to be used in each department. (b) Assume that the overhead rates you computed in (a) above are in effect. The job cost sheet for Job 407, which was started and completed during the year, showed the following: Direct labour-hours Machine-hours Materials requisitioned (Rs) Direct labour cost (Rs) Department Milling Assembly 5 20 90 4 800 45 370 160 Compute the total overhead cost applied to Job 407 and the cost of the job. (c) If, instead of using departmental overhead rates, the company uses plant-wide overhead- allocation rate using labour hour as base of allocation, what will be the estimated cost of Job 4077 (d) Between departmental overhead rate and plant-wide overhead rate, which gives better cost estimates and why? [4+7+6+3=20]