The following is the budget of Perb Limited for the year $2023$

Factory overheads Shs$\mathrm{.}62,000$

Direct labour cost Shs$\mathrm{.}98,000$

Direct labour hours $155,000$

Machine hours $50,000$

Actual labour hours were $40,000$

Actual machine hours were $30,000$

Actual direct labour costs were Shs$\mathrm{.}50,000$

Actual direct material costs were Shs$\mathrm{.}45,000$

Required Determine:

a$)$ The overhead application rate on the basis of

i$.$ Direct labour hours $(2$ Marks$)$

ii$.$ Direct labour cost $(2$ Marks$)$

iii. Machine hours, $(2$ Marks$)$

b$)$ Overhead costs based on the absorption rates above $(2$ Marks$)$

c$)$ Production cost $(2$ Marks$)$

QUESTION THREE