Question 3 Jane has implemented a job-order costing system for the Fridges-R-Fun division of retro fridges using predetermined overhead rates. For this division, the focus is on two different processes, namely, welding the pipes to the compressor and assembling the fridges. The predetermined overhead rate for welding is based on machine hours and the predetermined overhead rate for assembly is based on direct labour hours. Jane has compiled the following estimates for the current year:

Required: Based on this specific job, answer the following questions: a) Calculate the predetermined overhead rates used for welding and assembly. (Chapter 3, 5 marks) b) Calculate the product cost recorded for this specific job. (Chapter 3, 5 marks) c) Considering that this specific job is a batch of 10 units, calculate the unit product cost. (Chapter 3, 5 marks)

Table 2 - Estimates for the current year The plan is to use the implemented job-order costing system for the following job: Table 3 - Job 42