QUESTION 2: [10 MARKS] Tempoa-System Inc. uses a normal job-costing system at its Al-Jurf plant. The plant has a machining department and an assembly department. Its job-costing system has two direct-cost categories (direct materials and direct labor) and two manufacturing overhead cost pools. The machining department overhead is allocates to jobs based on machine-hours and the assembly department overhead is allocates to jobs based on direct labor costs. The 2017 budget for the plant is as follows: Particulars Manufacturing overhead Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Machining Department AED3,000,000 AED1,400,000 100,000 hours - 50,000 hours Assembly Department AED8,750,000 AED2,500,000 200,000 hours 200,000 hours During May, the job-cost record for two jobs - Kasuarina and Melur contained the following: Particulars/ Resources consumed from Direct materials used Direct manufacturing labor costs Direct manufacturing labor-hours Machine-hours Job - Kasuarina Machining Dpt. AED65,000 AED24.000 1.000 hours 2.800 hours Job - Melur Assembly Dpt. AED25,000 AED7,500 750 hours 400 hours REQUIRED: Compute the overhead rates for both departments L (2 marks) Compute the total manufacturing overhead costs allocated to both jobs. (2 marks) Lc Compute the total cost of each Job (3 marks) d. At the end of 2017, the actual manufacturing overhead costs were AED2,250,000 in machining department and AED7,250,000 in assembly department. It was reported thal 32,000 actual machine-hours were used in machining department and actual direct manufacturing labor costs in assembly department were AED2,200,000. Compute the over- or under allocated manufacturing overhead for each department. (3 marks) -END OF QUESTION PAPER