Quatan is a company selling pens. It uses the direct machine-hours to allocate manufacturing overhead. The production of 100 pens takes 1 labour-hours a a rate of $20 per labour hour and 2.5 machine-hours. A batch of pens equal to 1,000 pens. Each batch consumes $200 in direct material. The budgeted indirect manufacturing costs for 2022 is $1,000,000 and the production budget is of 20,000,000 pens.

(i) What are the indirect manufacturing costs and the total manufacturing costs of 10 batch of pens?

(ii) The industry benchmark for indirect manufacturing costs for similar orders is 50% of direct manufacturing labour. Whether the order of 10 batches has an indirect manufacturing costs lower or higher than a similar order using the industry benchmark and explain the reasons for the difference.

(iii) Now, assume another situation :

Quatan is a company selling pens. It uses the direct machine-hours to allocate manufacturing overhead. For the current year of 2020, the budgeted and actual indirect maufaturing costs were $1,200,000. The production budget and actual budget were 22,000,000 pens with 550,000 machine-hours and 20,000,000 with 500,000 machine-hours. Moreover, the company allocated the indirect manufacturing costs based on its budget. How much is the underallocation/overallocation of indirect costs for the year of 2020 and how shoud it be adjusted in the accounting records.

(please solve within 1 hour, I will upvote all the answers)