QUESTION 1 Warisan Sdn Bhd (WSB) produces traditional boats for fishing and tourism activity. WSB uses a normal costing system and allocates manufacturing overhead using direct labour cost. The following data is for the year 2018: Estimated manufacturing overhead cost Estimated direct labour cost Actual manufacturing overhead cost Actual direct labour cost Account balances on October 31, 2018, were as follows: Account Cost of goods sold Finished goods Ending Balance RM459,680 RM215,475 RM43,095 RM106,250 RM212,500 RM99,900 RM193,800 Work in process REQUIRED: (a) Calculate the predetermined manufacturing overhead rate. (b) Calculate the amount of underapplied or overapplied manufacturing overhead. (c) Calculate the ending balances in cost of goods sold, finished goods and work in process if underapplied or overapplied manufacturing overhead is allocated to those THREE (3) accounts. (d) Explain why WSB use normal costing rather than actual costing.