Part 5 Overhead costs {15 marks) The manufacturing company prepares the following budget for 2022. Direct labour cost 3 10,000 Macl' . g F' .1. g Factory overhead 3 100,000 $ 150,000 Machine hours 5000 1000 $ 300,000 This company uses a predetermined overhead rate for applying overhead based on machine hours for 'machining' and direct labour cost for 'nishing'. You are given the following actual information about one job: Direct materials used 3 12,000 $ 4,000 ' Machine hours 400 80 ' Direct labour cost 3 11,000 $ 22,000 Required: (1) Compute the meal east (full east) forthisjob. (10 marks) (2) Why we need to develop Activity-based costing (ABC)