QUESTION TWO

Adam Sandler is the financial controller for Plantation Fittings, a manufacturer of furniture. In June $2023($end of the financial year$),$ Sandler had prepared the following flexible budgets for direct labour and manufacturing overhead for the $\frac{2023}{2024}$ financial year. Though the factory has a capacity of $150,000$ direct labour hours per year, Sandler has estimated that the normal usage is $120,000$ direct labour hours in a typical year.

$\backslash$table$[[,$Manufacturing Overhead$],[$Direct$-$Labor Hours,Variable,Fixed,$],[100,000,$$$325,000,$$$216,000,],[120,000,390,000,216,000,],[140,000,455,000,216,000,]]$

Sandler is now analysing overhead costs for the month of May, $2024.$ He has gathered the following information:

$\backslash$table$[[$Labour$],[],[$Job $77,3,500],[$Job $78,3,000],[$Job $79,2,000],[$Labor costs:,$],[$Direct$-$labour wages,$$51,000.$ calculate the total cost of Job $77.$