please answer question 2

Question 2 Bender Automotive Works Inc. manufactures a variety of front-end assemblies for automobiles. A front-end assembly is the unified front of an automobile that includes the headlamps, fender, and surrounding metal/plastic. Bender has two producing departments: Drilling and Assembly. Usually the front-end assemblies are ordered in batches of 100. Two support departments provide support for Blender's producing departments: Maintenance and Power. The company does not separate fixed and variable costs. Budgeted data for the coming quarter follows: Support Departments Maintenance Overhead cost R320 000 Machine hours Kilowatt-hours 40 000 Direct labour hours Power R400 000 22 500 Producing Departments Drilling R163 000 30 000 36 000 5 000 Assembly R90 000 7 500 324 000 40 000 The predetermined overhead rate for Drilling is calculated on the basis of machine hours. Direct labour hours are used for Assembly. Recently, a truck manufacturer requested a bid on a 3-year contract that would supply front-end assemblies to a nearby factory. The prime costs for a batch of 100 front-end assemblies are R1 817.00. It takes two machine hours to produce a batch in the drilling department and 50 direct labour hours to assemble the 100 front-end assemblies in the assembly department. Bender's policy is to bid full manufacturing costs plus 15%. (Note: Round allocation basis (ratios) to four decimal places, allocated support department cost to the nearest rand, and the job cost components to the nearest cent). Required: 2.1 Calculate the overhead allocation to be included in the product cost for the bids using the following methods: a. b. c. Direct method Sequential method Reciprocal method nuortion