Question 3 ( 9 + 6 + 8 = 23 marks ) Felix Ply Lid uses a job-costing system at its Laverton plant The plant has a Machining Department and a Finishing Department Felix uses normal costing with two direct cost categories Direct materials and Direct manufacturing labour And two manufacturing overhead cost pools The machining department , with machine hours as the allocation base and The finishing department , with direct manufacturing labour costs as the allocation base The 2016 budget for the plant is as follows Machining Department Finishing Department Manufacturing Overhead 52 500.000 $2000 090 Direct Labour Costs $450 000 $1 000 090 Direct Labour Hours 5.000 80 000 Machine Hours 50.000 6500 Required a ) During the month of January , the amounts shown on the job cost record below were recorded for Job 29 . which consisted of 100 units . Use this information to calculate the cost of Job 29 on a per unit basis ( 9 marks ) Machining Department Finishing Department Direct Materials used $7 000 51 500 Direct Labour Costs $300 $625 Direct Labour Hours Machine HoursQuestion 3 ( continued ) b ) Actual costs incurred and actual machine hours at the end of 2016 are as follows . Use this information to calculate the under - or over - allocated manufacturing overhead for each department and for the Laverton plant as a whole ( 6 marks ) lachining Departmen Finishing Departmen Manufacturing overhead incurred $5 600.000 $3. 950. 000 Direct manufacturing labour costs $475 000 $2 050 000 Machine hours 110.000 16000Question 3 ( continued ) ( ) Describe three methods that Felix may use to dispose of the under - or over - allocated manufacturing overhead . Briefly discuss the relative benefits of each method . Which method would you recommend Felix use ? Justify your answer . ( 8 marks )