Question : Function-based costing JIM Ltd has identified the following overhead costs and cost drivers for next year Expenses/cost Selling cost Administration Cost Manufacturing overhead cost Utilities cost factory] Cost Driver Direct Labour Hours Machine Hours Expected cost) 55,000 35,000 38,000 22,000 E actual transactions) 3500 9,000 The following is the cost of 2 products made by the company: Direct materials Direct Labor Hour Rate Units completed DLA (hours) Machine hours Actual Costs Product X S4200 $29.00 250 460 185 1500 Product Y S3600 S14.00 210 320 160 5100 REQUIRED 1. Calculate the predetermined Rate (PR) for product X using machine hours and product Y using direct labour hours 2. What is the applied cost assigned to product X and product Y? 3. Calculate the total product cast using FBC for both products 4. Calculate the unit cost for each product 5. Is the applied cost for cach product under or over-applied? 6. What are the disadvantages of FBC and what solution has been offered as alternative? 140 mark