Question F10 Marks) Custom Clothing Ltd is a manufacturer of pieces of clothing ordered by customers in their own design. The minimum number of pieces to accept an order is 80 pieces. The following information for the year 2019 is provided by this company: Total production and sales (number of pieces) 80,000 pieces Total direct labour hours 100,000 Total machine hours 60,000 Costs: Marketing $2,400,000 Machine and maintenance repairs $860,000 Depreciation of sewing machines $32,000 Depreciation of factory building $18,000 Depreciation of administration equipment $8,000 Total cost of direct materials $720,000 Cleaning materials factory $6,000 Interest $2,100 Total cost of direct labour $1,800,000 Indirect labour $1,400,000 Factory electricity $650,000 Administration $1,800,000 Other indirect costs $520,000 1. Identification of costs From the information provided, calculate the following costs: Total direct costs Total overhead costs Total manufacturing costs Page 6 of 10 2. Calculation of OH rates Calculate the total overhead rates (round to 2 decimal places) using: a) Direct labour hours as the cost driver b) Number of pieces produced as the cost driver a) Rate based on direct labour hours b) Rate based on number of pieces produced 3. Calculation of cost and price charged for an order of 200 pieces The company has received an order for 200 pieces of clothing designed by the customer. It is estimated the order will take 240 direct labour hours (DLH) and 140 machine hours (MH). The company applies 60% mark-up on cost. a) Calculate the cost and price of the order separating the cost into direct materials, direct labour and overhead cost (round to 2 decimal places), assuming the company used direct labour hours as the cost driver and the estimated cost of materials for this order is $2,400. b) Calculate the cost and price of the order separating the cost into direct materials, direct labour and overhead cost (round to 2 decimal places), assuming the company used the number of pieces produced as the cost driver and the estimated cost of materials is the number of pieces multiplied by the average cost of materials per piece for the year 2019. Direct labour hours as the cost driver Number of pieces produced as the cost driver Price = Price =