QUESTION 1: Alabama Ltd (Chapter 4 - Full Costing) The following information has been taken from the budget for the forthcoming financial year: Direct materials cost 600,0008 Direct materials usage 40,000kg Direct labour cost 400,000 Direct labour time 20,000 hrs Maintenance 240,000 185,000 Depreciation Rent 120,000 Indirect Materials 24,000 Indirect Labour 80,000 Other indirect costs 14,000 Machine time 10,000 hrs All direct labour is paid the same hourly rate. Currently, Alabama Ltd has Project A which has the following cost: Raw materials 630 kg Direct labour hours 450 hours Machine hours 320 hours Required: A. Calculate overhead absorption rate (DAR) using direct labour and machine hour basis. B. B. Prepare full costing for Project A separately using machine hour basis as well as direct labour hour basis in the allocation of total overheads