Umar Art & Frame manufactures a custom kufi artwork. The company uses a job order costing system. The following events occurred during May $2023$ for Job number AA$-11$ in May $2023.$

a$.$ The company purchased $700$ unit of wood frame at RM$40$ per unit. This was immediately sent to the stores.

b$.250$ units of wood frame were requisitioned for production.

c$.20$ bottles of glue were requisition for production at RM$20$ per bottles. Glue is treated as an indirect material.

d$.$ The labour time record showed that $500$ hours of direct labour hours at RM$12$ per hour were worked for Job AA$-11$

e$.$ The labour time record also showed that RM$1,600$ of indirect labour was worked.

f$.$ Estimated manufacturing overhead for the year is RM$96,000.$ The number of direct labour hour expected to work $6,000$ hours during the year.

g$.$ Total manufacturing overhead incurred for May as follows:

$\backslash$table$[[,$RM$],[$Factory utilities,$2,500],[$Depreciation on building,$3,400],[$Insurance$,800]]$

h$.$ Job AA$-11$ was completed and transferred to finished goods at the end of May $2023.$

i$.$ Sold Job AA$-11$ on credit at cost plus $30\%.$

Required:

i$)$ Compute

a$.$ Overhead absorption rate based on direct labour hours.

$(2$ marks$)$

b$.$ Overhead absorption to Job AA$-11$

$(2$ marks$)$

c$.$ Overheads under$/$over absorbed for Job AA$-11$

$(3$ marks$)$

ii$)$ Prepare

a$.$ Journal entries for the transaction $($a$)$ to $($i$).$

$(11$ marks$)$

b$.$ Work in Progress Account

$(3$ marks$)$

c$.$ Manufacturing Overhead Account