Question 5 Cole Bhd. has prepared the budget for its Product R, for year 2019, as follows: RM Direct material 80,000 Direct labour (RM3 per hour) 60,000 Production overhead 120,000 260,000 Budgeted direct labour hours 20,000 hours Budgeted machine hours 15,000 hours Cole Bhd. has received a job order to manufacture Product R. The requirements for the order are as follows: Details of Job 222 Direct material RM110 Direct labour RM90 Direct labour hours 30 hours Machine hours 20 hours You are required to: (a) Calculate the following budgeted absorption rate for production overhead for year 2019: 1) percentage on direct material; (1) percentage on direct labour (111) percentage on prime cost; (iv) direct labour hour rate, and (v) machine hour rate. (6) Calculate the production overhead cost of Job 222 based on the absorption rates calculated in 2(a)(iv) and 2(a)(v). c) Calculate the production cost of Job 222 if the absorption rate used is based on direct labour hour rate; and (1) machine hour rate. (d) Given the actual production overhead costs and actual direct labour hours are RM120,000 and 18,000 hours respectively for the year 2019, calculate the total overhead over/under-absorbed, using the absorption rate based on the direct labour hour rate calculated in 2(a)(iv)