PART $1$

$(25$ marks$)$

Aubergine $is$ a manufacturer $of$ contemporary cases for tablets. The business uses a perpetual

inventory system and has a highly labour$-$intensive production process, $soit$ applies manufacturing

overhead based $on$ direct labour hours. Any overhead variance $is$ deemed $tobe$ immaterial and

therefore closed out $to$ Cost $of$ Goods Sold.

Aubergine's pre$-$determined overhead application rate for $2024$ was computed from the following data:

Total estimated factory overheads $$4,200,000$

Total estimated direct labour hours $35,000$

During the first month $of2024,$ the business recorded the following transactions.

$i$$$3,540$ bill for

freight $in.$

$ii$$$80,000$

$v$$$159,750$

$vi25\%oncost.$

Required:

$a$