Trevor's Heavenly Cakes (THC) produces custom decorative cakes for large events. The company uses a job-order costing system for its internal records. The company's direct materials consist of baking goods (flour, sugar, butter, etc.) used in baking & decorating their cakes, and its direct labour consists of the bakers' hourly wages. THC's overhead costs include various items such as the shop manager's salary, depreciation of equipment, utilities, insurance, and display cakes to show prospective customers. The company applies all of its overhead costs to jobs based on direct labour-hours. At the beginning of the year, it made the following estimates: Direct labour-hours required to support estimated output Fixed overhead cost Variable overhead cost per direct abour-hour 20,000 hours $350,000 $1 During the year Mrs. Skeet came in to purchase a cake celebrating her retirement from the construction industry. The following information was available with respect to her job: Direct materials $590 Direct labour cost $109 Direct labour-hours used 6 hours Required: A) Compute the predetermined overhead rate. Question 8 (2 points) B) Compute Mrs. Skeet's total job cost. Question 9 (4 points) C) If THC establishes its selling prices using a markup percentage of 45% of its total job cost, then how much would it have charged Mrs. Skeet? D The management of THC is thinking of using a process-order costing system instead of their current job-order costing system. Help them out. What difference between the two systems should they be aware of? Which do you recommend