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Question 2 GO-VID 21 FACTORY manufactures customised safety products. GO-VID 21 FACTORY uses a job order costing system and the factory overhead is allocated based on machine hours. Total factory overhead is estimated to be RM500,000 for the current year and estimates that its total machine hours for the year are 20,000 hours. The following information is for the month of AUGUST 2021: Inventories on August 1, 2018 Work in Process: MAZK (RM35,000) During August, the factory worked on its existing product: MAZK as well as new product FAZESHIL & SANITIZ. Materials (including indirect materials) purchased during the month amounted to RM160,000. Materials issued to FAZESHIL amounted to RM40,000, MAZK was issued materials of RM48.000 and SANITIZ was issued material of RM 30,000 During the month, the direct labor rate was RM80 per hour. Labour and machine hours recorded for the month of August: Job Direct Labor Hours Machine Hours FAZESHIL 220 400 MAZK 280 450 SANITIZ 200 380 During August, following manufacturing overheads were incurred indirect material worth RM10,000 were used indirect labour cost incured were RM20,000, insurance amounted to RM12,000 incured but yet to be paid (all relates to the factory operations); depreciation on factory equipment amounted to RM16,000. FAZESHIL & SANITIZ and were completed during August and transferred to Finished Goods. FAZESHIL was sold for RM200,000 in the same month itself. All purchases of material and sales of goods were on credit. Required: a Show the workings for pre-determined overhead rate. b. Prepare the necessary journal entries to record the transaction. c. Prepare a Job Cost Sheet for FAZESHIL & SANTIZ Determine the overhead variance. Show the necessary record. e Work in Process Inventory A/C