Poonaba Lahari is the Managing Director for High-Time Ladies Ventures. The

company runs a job shop that sews clothes or both sexes. The company uses job costing system

to accumulate CoSt to each job and uses a plantwide predetermined overhead rate based on

direct labour hours. At the beginning of the year, management estimated that 10,000 direct

labour hours would be required for the period's production level. Management also estimated

GHs 80,000 fixed manufacturing overhead and variable manufacturing overhead of GHs 2 per

direct labour hour. During the year, the company worked 1 1,000 hours on all jobs and incurred

GHs50,000 in fixed manufacturing overhead and GHs70,000 in variable manufacturing overhead.

During the year, the company received a job from Kingdom Christian Fellowship to produce 30

robes The data below relates to this job

Raw materials purchased for the job 5000

Direct labour cost (500 hours @ GH 5) 2500

Cost of ending raw materials inventory 1,500

Cost of ending work-in-process inventory 800

Units completed and delivered 25 gowns

Required:

1.Compute the predetermine overhead rate

2. Determine the manufacturing overhead under or over-applied for the year.

3, Make a schedule of cost ofgoods manufactured for the job

4. if the firms profit margin is 25%, what is the sales value per unit.