Question 7 (4 points) Please use the following information for the next 4 questions: Trevor's Heavenly Cakes (THC) produces custom decorative cakes for large events. The company uses a job-order costing system for its internal records. The company's direct materials consist of baking goods (flour, sugar, butter, etc.) used in baking & decorating their cakes, and its direct labour consists of the bakers' hourly wages. THC's overhead costs include various items such as the shop manager's salary, depreciation of equipment, utilities, insurance, and display cakes to show prospective customers. The company applies all of its overhead costs to jobs based on direct labour-hours. At the beginning of the year, it made the following estimates: Direct labour-hours required to support estimated output Fixed overhead cost Variable overhead cost per direct labour-hour 20.000 hours $350.000 $1 During the year, Mrs. Skoot came in to purchase a cake celebrating her retirement from the construction industry. The following information was available with respect to her job: Direct materials Direct labour cost Direct labour-hours used $590 $109 6 hours Required: A) Compute the predetermined overhead rate. Paragraph V B I Uv go V ... Question 8 (2 points) B) Compute Mrs. Skoot's total job cost. E Paragraph The BI , + Question 9 (4 points) C) If THC establishes its selling prices using a markup percentage of 54% of its total job cost, then how much would it have charged Mrs. Skoot? Paragraph B I Uy N A MA . Question 10 (10 points) D) The management of THC is thinking of using a process-order costing system instead of their current job-order costing system. Help them out. What differences between the two systems should they be aware of? Which do you recommend? Paragraph B I UY A