Question 1 (8 Marks) Qasar Babil LLC is one of the largest manufacturers and sellers of unique, custom-made residential doors in the Sultanate of Oman. The company has developed plans for expanding their network of operations for sales and services in different regions of Sultanate. Qasar uses a job order cost system and overheads are applied to production on the basis of direct labor cost. The company estimated manufacturing overhead to be OMR 24,000 and direct labor costs to be OMR 20,000 for the year 2021. Following information are also available: Actual Costs Incurred During 2021 Direct materials used OMR 30,000 Direct labor cost incurred OMR 21,000 Factory Insurance OMR 500 Indirect labor OMR 7,500 Factory maintenance OMR 1,000 Rent on factory building OMR 11,000 Depreciation - factory equipment OMR 2,000 Required: a. Explain why Qasar Babil LLC uses a job order costing system? (2 Marks) b. Compute the predetermined overhead rate for 2021. (0.5 Mark) c. Calculate the amount of the under-or over applied overhead for 2021. (0.5 Mark) d. Following are the balances of beginning and ending work in process and finished goods: 1 Jan 2021 31 Dec 2021 Work in process OMR 5,000 OMR 4,000 Finished goods 13,000 11,000 Assuming that any under- or over applied overhead should be included in the cost of goods sold, determine; i. Cost of goods manufactured and (2 Marks) ii. Cost of goods sold for Qasar during 2021. (2 Marks) e. Job QB 525 was started and completed during 2021. A total cost of OMR 100 is shown in the cost sheet, and the company prices its product at 50% above its cost. Determine the price to the customer if the company follows this pricing strategy? (1 Mark)