QUESTION 8: Product costing (20 marks) The Brunswick Bike Company, manufactures custom made mountain bikes. It uses an estimated rate for allocating factory overhead to job orders based on machine hours for the machining department and on a direct labour cost basis for the finishing department. The company budgeted the following for last year. Machining $8,000,000 250,000 15.000 $225,000 Finishing $5,000,000 14,000 Manufacturing overhead Machine hours Direct labour hours Direct labour cost 16,000 32,400,000 During December, the cost record for job 602 shows the following Direct material requisitioned Direct labour cost Machining $7,000 $300 Finishing $2,000 $6.750 20 300 Direct labour hours Machine hours 35 5 Required: 1. What is the estimated overhead allocation rate that should be used in the machining department? In the finishing department? (S marks] 2. What is the total overhead allocated to job 602? Provide your answer to 2 decimal points, (S marks] 3. Assuming that job 602 consisted of 80 units (80 bikes), what is the unit cost for this job to the nearest dollar? [10 marks)