Please send me the detailed answers to this exercise. Thank you very much

Hopkins Ltd manufactures electric motors for commercial use. The company produces three models called standard, deluxe and heavy duty. The company uses a job costing system with manufacturing overhead applied on the basis of direct labour hours. The system has been in place with little change for 25 years. Product costs and annual sales data are as follows: Standard model Deluxe model Heavy-duty model Annual sales (units) Product costs: Raw material Direct labour 20 000 1 000 10 000 $ 25 $ 42 S20) 170 S 232 S 10 10 (0.5 hr @ $20) 20 (1hr 20 (1 hr S20) 170 $215 Manufacturing overhead* Total product cost *Calculation of predetermined overhead rate Manufacturing overhead budget: 85 $ 105 Depreciation, machinery Maintenance, machinery Depreciation, taxes and insurance for factory $1 480 000 120 000 300 000 350 000 250 000 375 000 400 000 Purchasing receiving and shipping Inspection and repair of defects Material handling Miscellaneous manufacturing overhead costs Total Direct labour budget: Standard model Deluxe model Heavy duty model Total 3 570 000 10 000 hrs 1000 hrs 21 000 hrs Predetermined overhead rate = ($3 570 00021 000 hrs) = $170 per hour For the past 10 years, the company's pricing formula has been to set each product's budgeted price at 110 per cent of its full product cost. Recently, however, the standard-model motor has come under increasing price pressure from offshore competitors. As a result the p standard model has been lowered to $110 rice on the The company CEO recently asked the financial controller, 'Why can't we compete with these other companies? They're selling motors just like our standard model for $106. That's only a dollar more than our production cost. Are we really that inefficient? The financial controller responded by saying, 'I think this is due to an outmoded product costing system. As you may remember, I raised a red flag about our system when I came on