Spatula Ltd. has produced the following budgeted information for next year. 3a) Explain with examples, direct costs and indirect costs. (6 marks) Job RX5 has been received, it uses 40 of materials and 3 hours of direct labour and 6 hours of machine time. Using the above information calculate: 3b) The Overhead Absorption Rate (OAR) (5 marks) 3c) The Prime cost of Job RX5 (5 marks) 3d) The Full Cost of Job RX5 (4 marks) 3e) Explain why companies calculate the full cost of a job/ unit