Task 5 APC Machining uses a job costing system that is integrated with activity-based costing. Application rates used for allocating overheads to jobs are as follows. Activity area Cost driver Application rate Preparation Labour hours $20 per hour Cutting Machine hours $24 per hour Assembly Number of parts $8 per part Finishing Number of units $40 per unit Packing Weight of units $7 per kg Details for jobs completed in December were as follows. Job no. 47 Job no. 49 Direct materials costs $4,000 $10,000 Direct labour costs $6,700 $18,600 Labour hours - preparation 45 120 Machine hours - cutting 65 165 Number of parts 600 1,500 Number of units 50 150 Weight of units 300 kg 750 kg Required: a. Develop a simple organisational policy and procedures for purchase of materials