Question 6: Job and ABC costing [20 marks] The Cool Roof are a roofing business located in Brisbane. For the past four years the business has been using a job costing system to manage the costs for the manufacture of metal roofs they sell to their customers for installation. In the month of October the business had the following three jobs. The direct materials and direct labour for the each of the jobs is outlined below. Summary of costs Client ID: 40714 Client ID: 40715 Client ID: 40716 TOTAL $25,000 $15,000 $12,500 $52,500 $10,000 $6.000 $20.000 The business has estimated that their overheads, that will include the following costs rent, electricity, staff supervisor salaries and support team services will be $550,000 for the upcoming year. The business uses direct labour cost as their allocation base when applying overhead to jobs and expects that the total cost for the year will be $500,000. Required: 1. Calculate the predetermined overhead rate that The Cool Roof will use to apply overhead to theirjobs? Calculate the overhead for each client's job. Ensure that you show all formulas and inputs used in your calculation. {2.5 marks] what is the total cost of each job? Ensure that you provide all workings. [1.5 marks] 2. The job of Client 40714 was completed in October and waiting for their customer to pick up. Client 40716'sjob has been started and is estimated to be completed by the first week of November. Client 40715 has collected their order and paid The Cool Roof. You are the management accountant for The Cool Roof and need to prepare the month end journal entries to record the transactions based on the scenario above. Prepare the relevant journal entries for the month of October that demonstrates all costs moving through each manufacturing process through to completion and sale (ensure that you include appropriate descriptions for your journal entries) [5 marks]