Question No. 2 The budgeted production OH & other budget data of Bridge Cottage Co are as follows: Budget Production Dep A Overhead Cost $36000 Direct Material Cost $32000 Direct Labour Cost $40,000 Machine Hours 10,000 hours Direct Labour Hour 18000 hours Units of production 1000 Suppose that this product has a material cost of $80, labor cost of $85 and requires 36 labor hours and 23 machine hours to complete. Required: 1. Calculate the absorption rate using the various basis of absorption & Absorbed the OH in order to determine relevant material, labor & OH costs. 2. Critically evaluate the role of absorption rate in FOH costing.