QUESTION 2 Solar Sdn. Bhd. uses a job-order costing system On Oct 1, Materials and Supplies Control account had a balance of $28,500. Finished Goods (Job T17) balance on the Oct 1 was $17.500 7,500 Work in process as at Oct 1 consists of 2 jobs. Details as follows: Job Materials ($) Labour (5) Overhead (5) T19 5,200 3,000 2,800 T20 3,800 3,200 Machine hours and direct labour cost ($) incurred for the month of Oct Job Machine Hours Direct Labour Cost (S) T19 150 5,100 T20 510 3,900 T21 80 3,500 Materials (including supplies) purchased during the month amounted to $10,000. During the month Job T21 was started and received materials amounting to $5,800. During the same period, materials issued to Job T19 were $7,700 whilst Job T20 was issued materials of $5,500. No other jobs were worked on during the month. Closing balance of Materials and Supplies Control account on 31 Oct was $17,500. Other information Factory Rental amounted to $3.500 Indirect labour amounted to $1,100 Depreciation of plant equipment amounted to $5,200 Utilities for the plant amounted to $3,700 Factory overhead is allocated on the basis of machine hours. Total factory overhead is estimated to be $282,000 for the current year. Solar estimates total machine hours for the year are 12,000 hours Jobs T19 and T21 were completed during Oct and transferred to Finished Goods. Job T17 was sold for $27,500 and Job T21 was sold for $23,800 in Oct. Solar transfers all under / over allocated overheads to the Cost of Goods Sold at the end of each month Required (a) Determine the predetermined overhead rate per machine hour for the year (1 mark) (b) Determine the Indirect Materials used (1 mark) ) Prepare all necessary journal entries. (7 marks) (d) Compute the cost of Job T20 (1 mark) (e) Determine the under / over allocation of overhead for the month of Oct. Prepare the journal entry to record the under / over allocation of overhead. (2 marks)