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The following information for the year 2019 is provided by Tromben Ltd: Total sales revenue $5 200 000 Direct labour hours 100 000 hours Machine

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The following information for the year 2019 is provided by Tromben Ltd: Total sales revenue $5 200 000 Direct labour hours 100 000 hours Machine hours 80 000 hours Depreciation: factory equipment $280 000 Depreciation: factory building 5616 000 Depreciation: administration equipment 560 000 Direct materials $500 000 Factory electricity Sales commission (5% sales revenue) Indirect labour Machine and maintenance repairs General administration Direct labour Interest 520 000 Lubricants and cleaning materials f . Strikethrough $10 000 Rent marketing and sales office 512 000 Other miscellaneous production costs $24,000 Quality control costs $30,000 Question 1 Identification of types of costs (7 marks) From the information provided, calculate the following costs: Total direct costs Total overhead costs Total non-manufacturing costs Total full costs Labour rate (SIDLH) Question 2 - Calculation of OH rates {4 marks) Assume Tromben Ltd increased the total indirect costs to $1,572,000. Calculate the total overhead rates using: a} BL hours as the cost driver b) Machine hours as the cost driver a) Rate based on DL hours b} Rate based on machine hours Question 3 - Calculation of cost and price charged for a job (13 marks) The company has received an inquiry about a sophisticated product which is estimated to take 84 direct labour hours and 12 machine hours. This product requires two components at a cost of $80 each plus other materials costing $140. Required: 1} What would be the cost of this job, AND 2} What would be the price {charge to the client) if the firm applies 75% mark-up on cost: 0 Assuming the firm used DL hours as the cost driver 0 Assuming the firm used machine hours as the cost drive DL hours as cost driver Machine hours as cost driver 3} Why are the prices charged to the customer for the same product different? Explain in one sentence

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