Please answer Question B.

d) Give TWO (2) situations when 'under absorption' or 'over absorption' of overheads occur. (2 marks) e) State TWO (2) reasons for calculating the pre-determined overhead rate. (2 marks) B. On 1 July 2014, Hani receive an order to produce 100 units of pots. Job No. 116 was assigned for the order. The following budgeted data is available for Job No. 116: Direct material: Direct material purchased RM7,000 Direct material from store RM1,000 Direct material returned to supplier RM500 Direct labour hours: Asssembly (RM5 per hour) 220 Finishing (RM4 per hour) 200 Direct expenses Hire of special machine RM350 Additional information 1. Overheads are absorbed 60% of direct labour cost. Administrative and selling expenses to be absorbed at 20% of production cost. WN Profit margin is 20% of the selling price. Required: Prepare the Job Cost sheet for Job No 116. (8 marks) (Total: 30 marks)