Question 2. Healthy Alternatives is a health resort that offers a range of programs for health- conscious managers. Managers who participate are provided with a tailored program, consisting of a series of activities. A job costing system is used to calculate the cost of each program. The manager of Healthy Alternatives has designed the following programs for managers at the local water authority: Program A: Program B: Program C: Program D: Health check, 2 hour bushwalk, 30 minute yoga class, 15 minute massage Health check, 1 hour gym workout, 30 minute massage Health check, 2 hour bushwalk, 60 minute yoga class, 2 hour gym workout 1 hour gym workout, 30 minute yoga class, 2 hour bushwalk The following labour costs and overheads apply: Employee Bushwalking leader Labour cost $20 per hour Overhead applied $60 per hour Chargeout rates $96 per hour Massage therapist $40 per hour $100 per hour $168 per hour Personal trainer (for gym workout) $40 per hour $200 per hour $288 per hour Yoga class leader $20 per hour $120 per hour $168 per hour Medical doctor (for 30 minute health check) $100 per hour $180 per hour $336 per hour Required: (a) Determine the total cost of each of the programs. (b) How might the resort managers use these total costs? (c) Explain why there is a different overhead rate for each class of labour. (d) Calculate the price of each program using the chargeout rates.