U Lotus Ltd has identified the following overhead costs and cost drivers for next year Overhead Items E ( cost) $ Setups cost 90,000 Ordering Cost 50,000 Maintenance cost 150,000 Power 30,000 The following is one of the jobs completed during the year Direct materials Direct Labor Units completed DLH Number of setups Number of orders Machine hours Kilowatt hours Actual overhead Job 700 $1200 $900 250 40 2 10 50 60 $2500 Job 701 $600 $400 100 20 1 4 40 25 $1250 The company's practical activity is 5000 DHL . The company uses DHL to allocate cost to the product REQUIRED 1. Calculate the predetermined rate for the plant using FBC costing for job 700 PR = estimated overhead $[Total]/estimated activity (DHL) in units 2. Calculate the applied cost for Job 700 DHL used in job 700 = 40 hours Allocated cost =PR x DHL used in job 700 3. Calculate total product cost using FBC for job 700 DM [job 700] DL [job 700] MO [allocated TPC [Job 700)= 4. Calculate the unit cost for job 700? Unit cost = TPC / units produced = 5. Is the overhead over-applied or under-applied Compare allocated cost and actual cost of Job 700