The following factory overhead forecast which has been prepared for.

The following factory overhead forecast which has been prepared for the second quarter of 2020 (L; April — June) for 3ZZZ Limited. The company produces and sells different types of sports wears exclusively to School kids in Australia. Each of sport wear requires different amounts of machine time. Cost types Fixed costs $27 000 Variable costs $45 000 Cost drivers: Machine hours 18 000 Production units 6 000 Required: 1. Which cost driver probably would be most suitable for allocating overhead cost? 2. Using machine hours as the cost driver, what overhead recovery rate will be used for the year? 3. Product A requires 1/2 hour of machine time and Product B requires 3 hours. What are their overhead costs per unit? 4. Outline the organization’s policy, process and procedure to code, classify and check data for accuracy and reliability.

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