QUESTION 2 Study the information provided below and answer the following questions. Stevmark Limited manufactures precision tools to its customers' own specifications. The manufacturing operations are divided into three cost centres: A, B and C. An extract from the company's budget for the forthcoming period shows the following data: Cost centre Budgeted production overhead, R Basis of production overhead absorption, R A 385 000 22 000 machine hours 750 880 19 760 machine hours 409 640 41 800 labour hours Job AX1 was manufactured during the period and its job cost sheet reveals the following information relating to the job: Direct material requisitioned R67 801 Direct material returned to store R396.00 Direct labour recorded against job AX1: Cost centre A 146 hours at R48.00 per hour Cost centre B 39 hours at R57.00 per hour Cost centre C 279 hours at R61.00 per hour A special machine was hired for job AX1 at a cost of R590.00. Machine hours recorded against job AX1: Cost centre A 411 hours Cost centre B 657 hours Price quoted and charged to customers, including delivery R172 000. Stevmark Limited absorbs non-production overhead using the following pre-determined overhead absorption rates: Administration and general overhead 10% of production costs Selling and distribution overhead 12% of selling price REQUIRED: 2.1 Calculate the predetermined overhead absorption rate for each of the cost centres, using the basis (3 marks) indicated. 2.2 Present an analysis of the total cost and profit or loss attributable to job AX1. (12 marks)