Required: For each company, indicate whether the company is most likely to use job-order costing or process costing and provide justification for each answer. (10 marks) (b) CovidGo Sdn Bhd is a manufacturer of vaccines for the Asian market. The company uses a job-order costing system. The following are the cost estimates for the year 2022 Direct labour-hours Machine-hours Fixed manufacturing overhead cost Variable manufacturing overhead cost per direct labour-hour Variable manufacturing overhead cost per machine-hour 140,000 70,000 RM784,000 RM2.00 RM4.00 During the year, Job 777 was started and completed. The following information is available with respect to this job: Direct materials Direct labour cost Direct labour-hours Machine-hours Required: RM175 RM225 15 hours 5 hours CovidGo has for the past years used a plantwide predetermined overhead rate with direct labour-hours as the allocation base. a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 777. c. If CovidGo uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 777? (5 marks) CovidGo's cost controller believes that machine-hours is a better allocation base than direct labour-hours. a. Compute the plantwide predetermined overhead rate. b. Compute the total manufacturing cost of Job 777. c. If CovidGo uses a markup percentage of 200% of its total manufacturing cost, what selling price would it establish for Job 777? (2 marks) ACC3208/Page 3 of 5 Assume that CovidGo's controller is right about machine-hours being a more accurate overhead cost allocation base than direct labour-hours. If the company continues to use direct labour-hours as its only overhead cost allocation base what implications does this have for pricing jobs such as Job 777? ih marksi