Question 2 (20 marks) Royale Sdn. Bhdmanufactures school uniforms. The following information concerns its two main departments, Cutting and Sewing Budgeted Production overhead (RM) Labor hours Machine hours Cutting Department Sewing Department 100,000 500,000 50,000 10,000 10,000 50,000 The following actual data are details related to Job Order No. 118 for the company RM5 per metre Direct materials (4.000 metres) Direct labor Cutting Department (5,000 hours) Sewing Department (1,000 hours) Machine hours: Cutting Department Sewing Department RM6 per hour RM6 per hour 1.000 machine hours 1,450 machine hours Production output 10,000 units Basis of overhead absorption rate for Cutting Department is machine hour and Sewing Department is labor hour The profit for the job includes a margin on selling price of 30%. Required: a) Compute the overhead absorption rate (CAR) for each department (3 marks) b) Calculate total cost and cost per unit for Job Order No. 118. (12 marks) Determine the selling price of Job Order No. 118 to be quoted to the customer