(a) "Manufacturing overhead cost cannot be traced directly" -explain this statement with an example. (2 marks) (b) Discuss how overapplied and underapplied overhead costs are adjusted at the end of the year. (2 marks) (C) Information relates to manufacturing activities of ABC limited from last year: $ 1,500 Particulars Property taxes Utilities of factory Indirect labor 2,500 5,000 Depreciation-Factory Insurance cost-Factory 12,000 3,000 16,000 20,000 4,000 Purchase of direct materials Direct labor cost Direct materials inventory, Jan. 1, 2019 Direct materials inventory, Dec. 31, 2019 Work-in-process inventory, Jan. 1, 2019 Work-in-process inventory, Dec. 31, 2019 3,500 3,000 3,750 The company uses a predetermined overhead rate to apply manufacturing overhead costs to production. The rate last year was $5.00 per machine hour, a total of 5000, machine hours were recorded for the year. i Compute the amount of under-or overapplied overhead cost for the year (2 marks) ii. Prepare a schedule of the cost of goods manufactured for the year 2019. (Show all the workings) (6 marks)