Question 5: Jerash Manufacturing Company has presented the following budgeted costs information for the year 2020 regarding Product A: Direct materials costs Direct labor costs Manufacturing overhead costs Administrative and selling overhead costs Production JOD 840,000 JOD 200,000 JOD 610,000 JOD 300,000 600,000 units Prior to 2019, the company has relied on traditional allocation base using only labor hours as a predetermined manufacturing overhead rate. Sensing that this system was distorting manufacturing overhead costs. In 2020, the company has decided to switch to an activity-based costing system using four activity cost pools to allocate manufacturing overhead costs. Information on these activity cost pools are as follows: Activity Cost Pool Manufacturing Overhead Cost Total Activity Labor Related Machine Related JOD 240,000 8,000 direct labor-hours JOD 250,000 12,500 machine hours Quality Control JOD 120,000 8,000 Inspection hours Others JOD 10,000 Required: 1. Determine the activity rates for overhead costs the company should use in 2020. (4 Marks) 2. During 2020, the company received an offer from a regular customer to produce a customized job of 10,000 units from Product A. This job requires the following: Direct materials JOD 13,788. Direct labor JOD 11,212. 400 Labor hours, 720 Machine hours and 100 Inspection hours. JOD 1,000 of the administrative and selling overhead costs is assigned to the job. You are required to determine the price of the job, given that the company's profit margin is 20% of the job-selling price. (4 Marks)