Question 2 (11 marks) Shoostar Ltd is a video tech company that produces videos for companies\" marketing campaigns and video training content. All jobs are tailor-made to the clients' requirements. The company uses a job costing system, and had 2 jobs in process at the start of the year: Job 81 ($66 000) and Job SS ($55 000). The following information is available: (i) The company applies manufacturing overhead on the basis of video production hours. Budgeted overhead and video production activity for the year were anticipated to be $800 000 and 40 000 hours, respectively. (ii) The company worked on four jobs during the rst quarter (i.e. from 1 July to 30 September). Direct materials used, direct labour incurred and video production hours were as shown in the following table: Job Direct Direct Video production numbers material labour hours 30 000 $40 000 2000 (iii) Manufacturing overhead incurred during the rst quarter was $385 000. (iv) Shoostar Ltd completed Job S1, and Job S3 during the rst quarter. Job 81 was sold on credit, producing a prot of $60 000 for the company. Required: a) Calculate the company's predetermined overhead rate. (1.5 marks) ANSWER a): b) Calculate manufacturing overhead applied to production for the rst quarter. (1.5 marks) ANSWER b): 0) Determine the cost of jobs completed in the rst quarter. (4 marks) ANSWER c): d) Determine the cost of goods sold at the end of the first quarter. (1 mark) ANSWER d): e) Can a company use both job order costing and process costing? Why or why not? (3 marks) ANSWER e)