Question 2 Best Dressed (Pty) Ltd (BD) uses a 'normal' costing system to allocate production overhead to job orders. The budgeted rate is on a machine hour basis for the machining department and on a budgeted direct labour hour basis for the finishing department. The entity estimated the following for the current year: Machining Finishing Production overhead cost $11.750 000 $9.500.000 Machine hours 225 000 31 000 Direct labour hours 32 000 165 000 Direct labour cost $1,600,000 $5,775.000 During May 2021, the cost record for job order no. 777 shows the following: Direct materials requisitioned Direct labour cost Direct labour hours Machine hours Machining $18.000 $1.500 25 135 Finishing $2.500 $2.000 50 15 Required a) Explain in your own words the 'normal' system of allocating direct costs and allocating production overhead. Apply the 'normal' costing system to calculate the estimated overhead rate that should be used in the: i) machining department, and in) finishing department. (5 marks) b) Apply the estimated overhead rate in a) above and determine the production overhead costs that should be allocated to job 777. [4 marks) c) If job 777 manufactured 450 units of product, what is the unit cost per product of job 777? [3 marks] d) Provide reasons why BD uses two different overhead application bases. Also discuss why they might use labour costs in the finishing department to allocate overhead costs. Show calculations to justify your answer. [8 marks)