Q8. Cornell Industries, a latex-based product manufacturing company, uses a job-order costing system and applies overhead on the basis of direct labor hours. At the beginning of 2015, management estimated that 200,000 direct labor hours would be worked and RM 600,000 of overhead costs would be incurred. During the year, the company actually worked 220,000 direct labour hours and incurred the following production costs: Type of Costs Total Costs (RM) Indirect labour 140,000 Indirect material 100,000 Insurance 50,000 Utilities 90,000 Repair and maintenance 80,000 Depreciation 180,000 Direct material used in production 540,000 Direct labour 700,000 As the management accountant of Cornell Industries, you are required to: a. b. Calculate the predetermined overhead application rate for 2015. Calculate the amount of overhead applied to work in process during 2015. Determine the amount of underapplied or overapplied overhead for the year. List three examples of businesses that should use job order costing (e.g. tailor) C. d