Part B: Short-Answer Question (15 Marks] [ 40 minutes 1. Asalla Corporation, which applies manufacturing overhead on the basis of machine- hours, has provided the following data for its most recent year of operations: Estimated machine-hours 22,000 machine hours Actual machine hours incurred 25,000 machine-hours Estimated variable manufacturing overhead $4.50 per machine-hour Estimated total fixed manufacturing overhead $110,000 Actual manufacturing overhead cost incurred $200,000 Required: (a) Calculate the Predetermined Manufacturing Overhead Rate for the recently completed year. (3 marks) (b) Compute the amount of over/under applied manufacturing overhead cost for the year. (2 marks) (c) Write a note on the treatment of over/under applied manufacturing overhead cost (calculated in b) when calculating COGS and its impact on the company's gross margin and net income. (3 marks) 2. List two differences between Job order costing and process costing. Give one example of business under each costing system. (3 marks) 3. Define the following concepts: (4*1=4 marks) a. Variable cost b. Differential cost and revenue c. Margin of Safety in respect of units. d. Breakeven point in respect of sales