Question 1: Service Costing [22 marks] Part A Happy Life Ltd is a health resort that offers a range of programs for health-conscious managers. Managers who participate are provided with a tailored program, consisting of a series of events. A job costing system is used to calculate the cost of each program. The manager of Happy Life Ltd has designed the following programs for managers at the local water authority: Program A B D Activities Health check, 2-hour bushwalk, 30-minute yoga class, 15-minute massage. Health check, 1-hour gym workout, 30-minute massage. Health check, 2-hour bushwalk, 60-minute yoga class, 2-hour gym workout. 1-hour gym workout, 30-minute yoga class, 2-hour bushwalk. The following labour costs and overheads apply: Employee Bushwalking leader Massage therapist Personal trainer (gym workout) Yoga class leader Medical doctor (for 30-minute health check) Labour cost Overhead applied $30 per hour $90 per hour $60 per hour $150 per hour $60 per hour $300 per hour $30 per hour $180 per hour $150 per hour $270 per hour Required: Show all your workings. (1) Determine the total cost of each program. (4 marks) (ii) How might the resort managers use these total costs? (4 marks) (ii) Explain why there is a different overhead rate for each class of labour. (4 marks)