Question 2 (Total 4 marks) Green Manufacturing Pty Ltd is a computer manufacturing company. At the beginning of 2019, the following estimates were provided for the coming year: Machining Assembly Direct labor-hours 1,000 9,000 Machine-hours 10,000 500 Direct labor cost $ 8,000 $72,000 Manufacturing overhead costs $25,000 $360,000 The accounting records of the company show the following data for Job order from Elite Education: Machining Assembly Direct labor-hours 50 120 Machine-hours 170 10 Direct material cost $2,700 $1,600 Direct labor cost $ 400 $ 900 Note: overhead costs are applied on the basis of machine-hours for the Machining Department and on the basis of direct labor-hours for the Assembly Department. 3 Required: a. Compute the manufacturing overhead allocation rate for each department. (1 marks) b. Compute the total cost of Job order from Elite Education. (1 mark) c. Provide possible reasons why Green Manufacturing Pty Ltd uses two different cost allocation rates.

Question 2 (Total 4 marks) Green Manufacturing Pty Ltd is a computer manufacturing company. At the beginning of 2019, the following estimates were provided for the coming year: Direct labor-hours Machine-hours Direct labor cost Manufacturing overhead costs Machining 1,000 10,000 $ 8,000 $25,000 Assembly 9,000 500 $72,000 $360,000 The accounting records of the company show the following data for Job order from Elite Education: Machining Assembly 120 Direct labor-hours Machine-hours Direct material cost Direct labor cost 170 $2,700 $ 400 $1,600 $ 900 Note: overhead costs are applied on the basis of machine-hours for the Machining Department and on the basis of direct labor-hours for the Assembly Department. Required: a. Compute the manufacturing overhead allocation rate for each department (1 marks) b. Compute the total cost of Job order from Elite Education. (1 mark) C. Provide possible reasons why Green Manufacturing Pty Ltd uses two different cost allocation rates. (2 marks)