Specifically for part b) how did they arrive at the value of 60,000 for direct labor cost when calculating the full cost?

Activity 5, Question 3 You have been asked to suggest a method of deducing Patel Ltd's full cost of various production orders. This method will be used as a basis for setting prices. The production orders vary greatly in size and nature. The information coming from the budget for the forthcoming financial year is provided. B (Click the icon to view the budget information.) Requirements * Budget information 100,000 hours Requirement (a) Calculate two feasible overhead rates for the year. Calculate the two overhead rates that are most likely to be used to allocate overhead costs Complete the table below to find overhead rate A. (Round your final answer to the nearest cent.) Total overheads Direct labour hours Overhead rate A $ 1.800.000 100.000 = $ 1800 Direct labour hours Machine hours 90,000 hours s 100,000 Now find overhead rate B. (Round your final answer to the nearest cent.) Total overheads Machine hours = Overhead rate B $ 1.800.000 90.000 = $ 20.00 Requirement (b) Prepare full costings for Order No. 101 using each of the rates Calculated in (a) (that is, two separate costings). Prepare the full costing using overhead rate A. (Round your answers to the nearest whole dollar. Leave unused cells blank.) Cost Manufacturing costs: Power Direct materials Machine maintenance and repairs Factory heat and light Lubricants and cleaning materials Direct labour Depreciation factory buildings Machinery Indirect labour 500.000 95,000 10,000 15,000 1,500,000 325,000 1,005,000 250,000 3,800,000 Raw materials Direct labour Overheads 12.500 60.000 72.000 144.500 The business is not departmentalised for accounting purposes. All direct labour is paid at the same hourly rate $ Total Now prepare the full costing using overhead rate B. (Round your answers to the nearest whole dollar. Leave unused cells blank.) Print Done Move your pointer over or tap on the cells with red arrows to see incorrect answers. Now prepare the full costing using overhead rate B. Cost Raw materials 12,500 60,000 Direct labour Overheads 38,000 $ Total 110,500