1. Harvey Spectre Corporation uses job order costing. At the beginning of the year, the manager of the company estimates a fixed manufacturing overhead cost of $285,000 and a variable manufacturing overhead cost of $11.50 per direct labour hour. The manager also estimates that a total of 26,500 direct labour hours will be required for the coming year. At the beginning of the year, Harvey Spectre Corporation had the following inventory balances: Raw materials $5,500 Work in process $12,000 Finished Goods $11,500 The following transactions took place during the year (all sales and purchases were on account). i. Raw materials worth $680,000 were purchased for production purposes. ii. Raw materials worth $500,000 were requisitioned for the use in production (two-third of the amount was direct material and the remaining indirect material). iii. Utility bill for the factory of Harvey Spectre Corporation totaled $13,000. Utility bill for the corporate office of Harvey Spectre Corporation totaled $13,000. iv. Due to lower demand because of covid, the total direct labour hours worked was 23,300, for the whole year. The labour were paid at a rate of $13.75 per hour. V. The indirect labour cost amounted to $375,000. vi. Additional salaries of $178,000 were given to selling & admin staffs. vii. Depreciation cost incurred $550,000 (65% was factory machinery related and the remainder was office equipment related). X. viii. Maintenance cost for factory machinery amounted to $20,000. ix. Advertising expenses of $40,000 were accrued and unpaid. Harvey Spectre Corporation incurred a total cost of rent for $250,000. (70% is factory related and remaining is office related expenses) xi. Manufacturing overhead was applied to all jobs. xii. 1,200 units were completed and transferred as finished goods, out of which 800 units were sold to customers at a selling price of $1.250 per unit. Required: a. Calculate the total Manufacturing Cost for Harvey Spectre Corporation. (7 marks) b. Prepare all the necessary journal entries to record Harvey Spectre Corporation's factory related transactions. (You must also write the journal entry for no. xii after calculating the cost of the mentioned number of units). (15 marks) c. Calculate whether Manufacturing Overhead is Over Applied or Under Applied, explain your answer. Journalize the entry for MOH over/under applied. (4 marks) 1. Harvey Spectre Corporation uses job order costing. At the beginning of the year, the manager of the company estimates a fixed manufacturing overhead cost of $285,000 and a variable manufacturing overhead cost of $11.50 per direct labour hour. The manager also estimates that a total of 26,500 direct labour hours will be required for the coming year. At the beginning of the year, Harvey Spectre Corporation had the following inventory balances: Raw materials $5,500 Work in process $12,000 Finished Goods $11,500 The following transactions took place during the year (all sales and purchases were on account). i. Raw materials worth $680,000 were purchased for production purposes. ii. Raw materials worth $500,000 were requisitioned for the use in production (two-third of the amount was direct material and the remaining indirect material). iii. Utility bill for the factory of Harvey Spectre Corporation totaled $13,000. Utility bill for the corporate office of Harvey Spectre Corporation totaled $13,000. iv. Due to lower demand because of covid, the total direct labour hours worked was 23,300, for the whole year. The labour were paid at a rate of $13.75 per hour. V. The indirect labour cost amounted to $375,000. vi. Additional salaries of $178,000 were given to selling & admin staffs. vii. Depreciation cost incurred $550,000 (65% was factory machinery related and the remainder was office equipment related). X. viii. Maintenance cost for factory machinery amounted to $20,000. ix. Advertising expenses of $40,000 were accrued and unpaid. Harvey Spectre Corporation incurred a total cost of rent for $250,000. (70% is factory related and remaining is office related expenses) xi. Manufacturing overhead was applied to all jobs. xii. 1,200 units were completed and transferred as finished goods, out of which 800 units were sold to customers at a selling price of $1.250 per unit. Required: a. Calculate the total Manufacturing Cost for Harvey Spectre Corporation. (7 marks) b. Prepare all the necessary journal entries to record Harvey Spectre Corporation's factory related transactions. (You must also write the journal entry for no. xii after calculating the cost of the mentioned number of units). (15 marks) c. Calculate whether Manufacturing Overhead is Over Applied or Under Applied, explain your answer. Journalize the entry for MOH over/under applied. (4 marks)