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FellaDesign manufactures custom-made furniture, FUR4O4, for its customers. FUR404 will go through two departments: Cutting and Finishing. The company uses job-costing system to determine unit cost for product. The company has two direct-cost categories (direct materials and direct labour), and two manufacturing overhead costs (Cutting Department and Finishing Department). The manufacturing overhead costs for Cutting Department are allocated on the basis of machine hours. The direct-labour costs is the allocation base for allocating Finishing Department manufacturing overhead costs. 1. The budgeted manufacturing overhead costs for each department are as follows: 2. During the February 2019, the job-cost record for FUR404 contained the following: 3. 12,000 units of FUR404 were manufactured during February 2019. 3. 12,000 units of FUR404 were manufactured during February 2019. 4. The actual manufacturing overhead costs at the end of the year are as follows: Required: a. Compute the budgeted indirect-cost rate and actual rate for Cutting Department and Finishing Department. (6 marks) b. Why do budgeted indirect cost rate and actual indirect cost rate differ? Briefly explain your answer (2 marks) c. Using normal costing, what are the total manufacturing overhead costs to FUR4O4? ( 2% marks) d. Compute total cost and cost per unit for Job FUR404. (4\% marks) Calculate the amount of underallocated or overallocated manufacturing overhead by comparing the (6rmarks) b. Why do budgeted indirect cost rate and actual indirect cost rate differ? Grieffy explain your answer (2. marks) C. Using normal costing, what are the total manufacturing overhead costs to FUR404? (2\% marks) d. Compute total cost and cost per unit for Job FUR404. (4% marks) e. Calculate the amount of underallocated or overallocated manufacturing overhead by comparing the budgeted and actual manufacturing overhead costs for each department and for the whole company. (7 marks) Discuss why there is no underallocated and overallocated under actual costing