Optic Vision Pty Ltd, a manufacturer of fibre-optic communications equipment, uses a job costing system. Since the production process is heavily automated, manufacturing overhead is applied on the basis of machine hours using a predetermined overhead rate. The current annual rate of $45 per machine hour is based on estimated manufacturing overhead costs of $3,600,000 and an estimated cost driver level of 80,000 machine hours.

Operations for the current year have been completed, and all the accounting entries have been made for the year except the application of manufacturing overhead to the jobs worked on during December, the transfer of costs from work in process to finished goods for the jobs completed in December, and the transfer of costs from finished goods to cost of goods sold for the jobs that have been sold during December.

Summarised data as at 30 November, and for December, are presented in the following table. Job numbers T11-007, N11-013 and N11-015 were completed during December. All completed jobs except Job number N11-013 had been turned over to customers by the close of business on 31 December.

Required:
1. Now much manufacturing overhead would Optic Vision have applied to jobs to 30 November?
2. How much manufacturing overhead would be applied to jobs by Optic Vision during December?
3. Determine the amount by which the manufacturing overhead is overapplied or underapplied as at 31 December.
4. Determine the balance in Optic Vision's Finished goods inventory account on 31 December.
5. Prepare a schedule of cost of goods manufactured for Optic Vision Pty Ltd for the year.

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Work in Process: December activity Job numbers Balance 30 November Direct material Machine hours Direct labour $ 4 500 T11-007 $261 000 $13 500 300 N11-013 165 000 12 000 1 000 36 000 N11-015 76 800 80 100 1 400 D12-002 113 700 60 000 2 500 78 000 $285 000 50 400 $240 000 D12-003 800 $426 000 Totals 6 000 Operating activity Activity to 30 November December activity Actual manufacturing overhead incurred: $ 375 000 $ 27 000 Indirect material Indirect labour 1 035 000 90 000 Utilities 735 000 66 000 1155 000 $3 300 000 Depreciation 105 000 Total overhead $288 000 Other items: Raw material purchases Direct labour cost Machine hours Account balances at beginning 1 January: Raw material inventory* Work in process inventory Finished goods inventory $2 895 000 $2 535 000 73 000 $294 000 $240 000 6 000 $315 000 180 000 375 000