Question Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items Power Maintenance cost Ordering cost Set ups cost Cost Driver Number of setups Number of orders Machine Hours Kilowatt hours E ( cost) $ 15000 7800 6150 4500 E( activity) 400 4,000 5,000 52000 The following is one of the jobs completed during the year Direct materials Hourly rate Units completed DLH Number of setups Number of orders Machine hours Kilowatt hours Actual overhead Product A $1200 25 125 140 4 20 250 75 $1500 Product B $1300 30 150 70 6 9 100 48 $950 The company's practical activity is 9800 machine hours REQUIRED Part 1 1. Calculate the predetermined rate for the plant using FBC based on machine hours for each job 2. Calculate total product cost using FBC based on Machine hours for each job 3. Calculate the unit cost for each Product 4. Is the overhead over-applied or under-applied? Part 2 5. Calculate the predetermined rate for the plant using ABC based on machine hours for each job 6. Calculate product cost under ABC. 7. Calculate the unit cost for each Product (ABC] 8. Is the overhead over-applied or under-applied under ABC? 9. Compare the result of FBC and ABC