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QUESTION ONE Katondo Ltd uses a job costing system at its Mukobeko, Kabwe plant. The plant has a machining department and a finishing department. Katondo
QUESTION ONE Katondo Ltd uses a job costing system at its Mukobeko, Kabwe plant. The plant has a machining department and a finishing department. Katondo Ltd uses normal costing with two direct-cost categories (direct materials and direct manufacturing labour) and two manufacturing overhead cost pools (the machining department with machine - hours as the allocation base, and the finishing department with direct manufacturing labour costs as the allocation base). The 2021 budget for the plant is as follows: Required 1. To prepare an overview diagram depicting the job-costing system in Katondo Ltd. 2. To compute the budgeted manufacturing overhead rate in: - The machine department - The finishing department 3. During the month of January 2021, the job-cost record for job XYZ shows the following: Compute the total manufacturing overhead cost allocated to job XYZ. 4. Assuming that job XYZ consisted of 400 units of product, compute the cost per unit? 5. The following amounts were obtained at the end of 2021 : Compute the under-over allocated manufacturing overhead for each department for the Mukobeke plant as a whole. 6. Explain why Katondo Ltd uses two different manufacturing overhead co
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