Woodstock Sdn. Bhd. (WSB) uses a normal job order costing system. There are two departments, Manufacturing and Assembly, through which most jobs pass. Selected budgeted and actual data for the previous year as follow:

	Manufacturinq	Assemblv
Budgeted overhead	RM900,OOO	RM600,OOO
Actual overhead	RM500,OOO	RM200,OOO
Expected direct labour hours	150,000 hours	25,000 hours
Expected machine hours	25,000 hours	125,000 hours

During the year, several jobs were completed. Data pertaining to of the job, Job No. 123 are as follows:

Direct materials RM630,OOO Direct labour cost:

Manufacturing (4,000 hours @ RM14 per hour) RM56,OOO

Assembly (300 hours @ RM12 per hour) RM4,800

Machine hours used:

Manufacturing 120 hours

Assembly 1,100 hours

Units produced 20,000 units

Required:

1. Calculate overhead absorption rate (OAR) for each department. Use direct labour hours for manufacturing and machine hours for assembly.
   4. marks)
2. Using the above OAR, compute per unit manufacturing cost for Job No. 123.

(Note: Round the unit cost to the nearest cent).

(6 marks)

3. Recalculate the unit manufacturing cost for Job No. 123 using blanket overhead rate (use direct labour hours).