Please review the below table and answer the following questions and provide the formulas.

Salah Surf Boards makes custom boards for professional surfers.The boards vary according to the types of materials requested by customers and the amount of direct labor required for the finishing process.

The following costs are estimated for 20x5:

Number of surfboards3,000

Direct labor hours45,000

Direct material costSAR 175,000

Direct labor costSAR 900,000

Overhead costSAR 675,000

During 20x5 actual costs were:

Number of surfboards3,300

Direct labor hours46,300

Direct materialsSAR 185,000

Direct laborSAR 850,000

Overhead SAR 664,000

a.Explain why job costing, and not process costing, should be used for this organization.

b.Salah uses a standard costing system.Overheard is allocated on the basis of direct labor hours.Calculate the manufacturing cost of a

surfboard that takes SAR 150 of direct materials and 36 hours of direct labor.

c.At the end of 20x5, how much overhead had been allocated to production?

d.Is the overhead over or underapplied, and by how much?

e.Assume that any over or underapplied overhead is closed to the cost of goods sold.Prepare the journal entry for the adjustment.