QUESTION 1 Interface unit manufactures precision street signs on order for its customers. The company uses a basic job costing system as a predetermined overhead rate based on machine hours. In their financial year for 20x1, the books weren't balancing, and the CEO feared that they may be liquidated. Mr. Interface hired you to assist with his basic job costing system. The following information was provided to you: II. The budgeted manufacturing overheads for 20x1 amounted to R638 400.00 and the budgeted machine hours were 56 000 hours. During January 20x1, the company worked on three jobs. The details of these jobs are listed below: JOB NUMBER Regulatory signs Warning signs-Guide signs-G1 COST ITEM -R1 W1 Direct Material R73 600.00 R222 600.00 R86 400.00 Used Direct Labor Cost R244 400.00 R238 400.00 Machine Hours 26400 16400 R111 900.00 9600 By the end of January 20x1, Regulatory signs-R1 was completed and sold. Warning signs-W1 and Guide signs-G1 were also completed but remained in the inventory. Actual overhead incurred during January 20x1 were R723 900.00 You are required to: INC 2601/S2/2022 1.1 Calculate the overhead absorption rate for January 20x1 (6) 1.2 Determine the amount of overheads that should be absorbed by each job for January 20x1 (9) 1.3 Determine the production cost of goods sold for January and the value of the closing inventory (12) 1.4 Determine the amount of under- or over-absorbed overheads for January (3)