Tommy PLC uses a job order costing system and applies overhead to production of its films on the basis of direct labour cost. The company estimated film production overhead to be RM 24 million and direct labour costs to be RM 20 million. In addition, it developed the following information: Actual costs incurred during the year 2020: RM Direct materials used 30,000,000 Direct labour costs incurred 21,000,000 Insurance, studio 500,000 Indirect labour 7,500,000 Studio maintenance 1,000,000 Rent on studio building 11,000,000 Depreciation on studio equipment 2,000,000 Required: (a) Why Tommy PLC uses job order costing system? Justify your answer. (3 marks) (b) On what basis does Tommy PLC allocate its film production overhead? Compute the predetermined overhead rate for 2020. (4 marks) (e) Compute the amount of under or over applied overhead for 2020. (8 marks) (d) Tommy PLC had balances in the beginning and ending films in process and finished films accounts as follows: 1/1/2020 31/12/2020 Films in process RM 5,000,000 RM 4,000,000 Finished films 13,000,000 11,000,000 Determine the (1) cost of films produced and (2) cost of films sold for Tommy PLC during the year 2020. Assume any under or over applied overhead should be included in the cost of films sold. C