QUESTION 1 (25 marks) Gemersik Bhd operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated RM800,000 of manufacturing overhead for an estimated allocation base of RM500,000 direct material cost to be used in production The company has provided the following data for the just completed year Raw materials Work in Process Finished Goods Beginning (RM) 20.000 150.000 260.000 Ending (RM) 80,000 70,000 400,000 RM 510.000 90.000 Purchase of raw materials Direct labor cost Manufacturing overhead costs Indirect labor Property taxes Depreciation of equipment Maintenance Insurance Rent: building 170.000 48.000 260.000 95.000 7.000 180,000 Required: a) Compute the predetermined overhead rate for the year. marks) b) Determine the actual manufacturing overhead costs. (4 marks) c) Compute the cost of goods manufactured for the year assuming all raw materials are used in production as direct materials. (6 marks) d) Compute the unadjusted cost of goods sold for the year. (4 marks) ACCT 7201 June 2018 Page 2 of 7 e) Calculate the over/under applied manufacturing overhead costs. (3 marks) 1) Siate the options in disposing the under-applied or over-applied. (2 marks) 8) Job 566 was started and completed during the year. Compute the price to be charged to the customer if the job require RMB,500 in direct materials and RM2,700 in direct labor cost and the policy of the company is to mark up at 25% on job's cost