Class: B3B ACC 320 Costing 1/3 Answer all questions and show your workings Question 1 : Function-based costing JIM Ltd has identified the following overhead costs and cost drivers for next year Expenses/cost Selling cost Administration Cost Manufacturing overhead cost Utilities cost factory Cost Driver Direct Labour Hours Machine Hours Expected (cost) $ 55,000 35,000 38,000 22,000 Ef actual transactions) 3500 9,000 The following is the cost of 2 products made by the company Product X Product Y Direct materials $4200 $3600 Direct Labor Hour Rate $29.00 $14.00 Units completed 250 210 DLH (hours) 460 320 Machine hours 185 160 Actual Cost $ 1500 5100 REQUIRED 1. Calculate the Predetermined Rate (PR) for product X using machine hours and product Y using direct labour hours 2. What is the applied cost assigned to product X and product Y? 3. Calculate the total product cost using FBC for both products 4. Calculate the unit cost for each product 5. Is the applied cost for each product under or over-applied? 6. What are the disadvantages of FBC and what solution has been offered as alternative? [40 marks]