Question: Hello, can someone help me solve this accounting question please? Thank you so much! Sky Marine Ltd undertakes a range of work, including making sails
Hello, can someone help me solve this accounting question please? Thank you so much!

Sky Marine Ltd undertakes a range of work, including making sails for small sailing boats on a made~to-measure basis. The following costs are expected to be incurred by the business during next month: 35 Direct materials costs 3,000 Direct labour costs 30,000 Depreciaiion of machinery 3,000 Heating, lighting and power 2,000 Indirect labour coat 0,000 Indirect materials 400 Direct labour time 6,000 hours Machine time 2,000 hours The business has received an enquiry.r about a sail and it is estimated that the sail Iwill take 12 direct labour hours to make and will require 20 square metres of sail-cloth {which costs $2 per square metre]- The business norn'Iall'j,t uses a direct-labour-hour basis of charging overheads to individual jobs. The production manager has suggested that for this job a machine hour basis of overhead recoveryr might be more appropriate. The sail will take 5 machine hours. Required: (a) Calculate the full cost of making the sail on ihe normal overhead recovery (overhead absorption) basis. [IE marks} (b) lCalculate, and briefly,r comment on the effect of the production manager's suggestion. [4 marks}
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