Part B per unit a Job Costing for New Jersey cements Company (A) Job Costing at New Jersey Cements Company This Company manufactures three products M, N and O. The direct costs of three products are shows as below: Information Product N 0 Budgeted annual production (units) 60,000 96,000 80.000 Direct Materials $ 140 per unit S 180 per unit S 120 Direct Labour (S 20 per hour) $ 160 per unit $ 120 per unit $ 200 per unit In addition to the above direct costs, the company incurs annual indirect production cost of $ 5,568,000. Overheads were allocated to product based on number of direct labour hours (B) Job K 440 New Jersey Cements Company executes a job no. K440. The cost and output details of Job No. K440 are given below: Information Costs/hours details for Job No. K440 Direct Materials $ 420 per unit of output Direct Labor S 300 per unit of output Overhead Absorption Rate (based on direct labor hours) $ 15 per direct labour hour (Calculated value) Number of direct labor hours to be used for Job K440 12,000 hours Units to be produced (output) 6,000 units Required (1) Compute the total cost per unit for products M, N and Ofi.e., Materials + Labour + Overheads) for New Jersey Cements Company (based on information given above in (A) (20 marks) (2) Based on information given in (B) above, ascertain the total cost per unit (i.c., materials + labour + Overheads) of Job No. K440 (10 marks) (3) Explain briefly why over/under absorption of overheads occur? (10 marks) (20 + 10 + 10 = 40 marks)