PLEASE HELP ME ON THIS QUESTION

Question 6: Job and ABC costing [20 marks] The Cool Roof are a roofing business located in Brisbane. For the past four years the business has been using a job costing system to manage the costs for the manufacture of metal roofs they set! to their customers for installation. In the month of October the business had the foiiowing three jobs. The direct materials and direct labour for the each of the jobs is outlined below. Summary of costs Client ID: 40714 Client ID: 40715 Client ID: 40716 TOTAL $25,000 $15,000 $12,500 $52,500 The business has estimated that their overheads, that will include the following costs- rent, electricity, staff supervisor salaries and support team services will be $550,000 for the upcoming year. The business uses direct labour cost as their allocation base when applying overhead to jobs and expects that the total cost for the year will be $500,000. Required: 1. Calculate the predetermined overhead rate that The Cool Roof will use to apply overhead to their jobs? Calculate the overhead for each client's job. Ensure that you show all formulas and inputs used in your calculation. [2.5 marks] what is the total cost of each job? Ensure that you provide all workings. [1.5 marks] Summary of costs Client ID: 40714 Client ID: 40715 Client ID: 40716 TOTAL Materials Labour Overhead TOTAL 2. The job of Client 40714 was completed in October and waiting for their customer to pick up. Client 40716's job has been started and is estimated to be completed by the first week of November. Client 40715 has collected their order and paid The Cool Roof. You are the management accountant for The Cool Roof and need to prepare the month end journal entries to record the transactions based on the scenario above. Prepare the relevant journal entries for the month of October that demonstrates all costs moving through each manufacturing process through to completion and sale (ensure that you include appropriate descriptions for your journal entries) [5 marks]3. The Cool Roof are thinking about implementing an activity-based costing system {ABC} in order to allocate their overhead costs. They have identied the following activities of their business and how their estimated overhead costs can be applied to these activities. Activity Overhead cost Cost driver Number of activities Cutting of meta! $350,000 Number of metres of material 1,000 metres Packing and distribution $130,000 1,500 kgs $60,000 Calcuiate the allocation rate for each activity ensuring that you show all inputs and calculations used. [3 marks] 4. Suppose job Client ID 40714 had the following activity. What overhead cost would you apply to this job? Ensure that you show all inputs and calculations. [5 marks] Activity Client ID 40714 Activity Cutting of metal 40 Packing and distribution 150 Sales visits to customers 45. What do you see as being some obstacles in The Cool Roof implementing and ABC system? Provide three (3) potential obstacles and discuss. [3 marks]