system. Its plant has two production departments that are Molding and Painting department Kreatif Berhad produces variety of pottery products. The company uses a job order costing The manufacturing overhead cost is applied to jobs on the basis of direct labour cost. The estimated manufacturing overhead and direct labor cost for each department for the year 2013 SECTION A (100 MARKS) ANSWER ALL QUESTIONS QUESTION I (25 MARKS) is as follows: Direct labor cost Molding Painting Manufacturing Overhead RM400.000 RM100,000 RM100.000 RM300.000 In November 2013. the company received an order from Jaya Berhad that must be delivered by the two departments as follows: the end of December 2013. This Job 007 would have required direct manufacturing costs in Molding Painting Direct material cost RM200 RM1,400 Direct labor cost RM1,200 RM6,000 At the end of the year 2013, Kreatif Berhad has identified the following actual cost data relating to all jobs worked during the year Direct material cost Direct labor cost Manufacturing overhead Molding RM16,000 RM108,000 RM420,000 Painting RM114.000 RM240.000 RM84.000 Required: a Calculate a plant-wide overhead rate and determine the total overhead cost absorbed to Job 007 (4 marks) b. Instead of using a plant-wide overhead rate, calculate the departmental overhead rates in each department Determine the total overhead cost absorbed to Job 007. (6 marks) C Kreatif Berhad has a policy to add a 150% markup on job costs to arrive at the selling price. Determine the selling price for the Job 007 using: 1 Plant-wide overhead rates in (a) above 11. Departmental overhead rates in (b) above (7 marks) FOB/PAS1373 007. Briefly explain your reason 4. In your opinion, which selling price should the company use to set the selling price for Job (2 marks) e. Compute the underapplied or overapplied overhead for the year 2013 assuming that the departmental overhead rates in (b) are used. (6 marks)