Question 2 (16 marks) Ryan's Sportswear Ltd. is a company specialized in manufacturing sportswear. The company uses a job-order costing system. In the beginning of the year, the company's founder Mr. Ryan made the following estimates for the two departments involved with producing sportswear: Department A Department B Direct materials costs $110,000 $100,000 Direct labor hours Machine hours 2,000 10,000 80,000 1,000 Variable manufacturing overhead per labor hour $0.5 $2 Variable manufacturing overhead per machine hour $1 $0.2 Fixed manufacturing overhead cost Wage per labor hour $60,000 $10 $50,000 $10 The company has recently completed Job 100 with the following cost information: Direct labor hours Machine hours Direct materials cost Department A 10 Department B 200 100 10 $5,000 $3,000 Instructions: (a) Choose appropriate allocation base for Ryan's Sportswear Ltd. and explain your choice. (2 marks) (b) The company uses predetermined overhead rates to apply manufacturing overhead cost to jobs. Based on the allocation base you have chosen, calculate the total overhead costs applied to Job 100. (7 marks)