Question 1 Jess lCreations (\"JG") manufactures dresses. It uses normal costing and a plant wide MDH rate based on direct labour hours. JC has two operating departments: A and E. The manufacturing activities are divided into cutting, sewing, maintenance {including utilities} and material handling {which is automated and occur only in Department A}. Material for dresses are cut by machines in Department A. Next, in Department E, the labour intensive jobs of sewing and packing are performed by workers using individual sewing machines. Iu'teoentljy-rI the CF!) is considering using activitybased costing [ABC] to allocate MDH. The accountant has provided the following annual budgeted activities data: \"MC\" WEE-\"d Pool $ Activi Eln 55.53\" - 23.53 54430:] _ Maintenance $5.53!] Material handling T3 Sill] Set up 245 {each setup can produce L units The following data relates to the current job completed for EFG Ltd, a regular customer. Department A Department B Direct materials $ll Direct labour rate $3 per DLH Number of units completed -D Direct labour hours per unit 11].] [15 Machine hours per unit #15 [1.3 Number of setups 6D The company's budgeted direct labour hours for the year is 145.5211] direct labour hour [DLH]. JC prices its products based normal ill product cost plus 5% mark up. Required: [a] Using normal costing method. compute the price [round to nearest dollar] that It: should bill EFG Ltd for the current job using plantwide rate. {ti marks] [b] Using normal costing method, compute the price that JC should bill EFG Ltd for the current job using ABC rates {rounded to nearest dollar]. {6 marks] [c] Discuss the suitability of using activitybased costing to allocate overheads for It: {you should compare the suitability of other allocation methods in your answer]. Explain the mmce in prot observed {if any]. [13 marks]