Part A1. Calculate the predetermined rate for Job 700 using FBCbased on DHL for each job2. Calculate total product cost using FBC based on DHL forjob 7003. Calculate the unit cost of the job4. Is the overhead over-applied or under-appliedPart B1. Calculate the PR for job 701 using machine hours2. Calculate the total product cost using FBC based on machinehours for job 7013. Calculate the unit cost4. Is the overhead under or over-applied?

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 Number of orders 10 4 Machine hours 50 40 Kilowatt hours 60 25 Actual overhead $2500 $1250 The company's practical activity is 9000 DHL