1. Redding Manufacturing Redding Manufacturing uses a job order costing system to account for its production costs. Jobs: On January 1, 2016, there was only one job in production (Job #15-83). In January 2016, Redding started two new jobs (#16-01 and #16-02). By the end of the month, Redding had completed Jobs #15-83 and #16-01. Overhead: Production managers calculate a predetermined overhead allocation rate based on machine hours. They use this rate to apply overhead to individual jobs. For 2016, management estimated $540,000 total overhead cost and 60,000 machine hours. Labor costs: Redding pays direct labor employees $20.00 per hour. The monthly supervisor and staff salaries are $53,000. Actual amounts for January 2016: Direct labor hours Machine hours Materials requisitioned for production Inventory Balances Raw materials WIP (Job #15-83) Finished Goods Other information for January 2016: Purchases of raw materials $150,000 Indirect materials $ 6,000 Rent for production plant $ 6,500 Utilities for production plant $ 4,000 Repairs and maintenance $ 4,000 Job #15-83 Job #16-01 Job#16-02 800 hours 1,200 hours 1,400 hours 2,000 hours 3,000 hours $45,000 $37,500 3,500 hours $25,500 January 1 $10,500 $54,000 $112,500 Required: (A) Calculate the predetermined overhead rate. (B) Calculate the total cost of Job #15-83 once it is completed in January. (C) Calculate total overhead applied to all jobs in January. Assume 8,500 MH were used. (D) Calculate the actual amount of overhead incurred during January. (E) Was overhead underapplied or overapplied in January? (F) What is the ending balance in the WIP Inventory account on January 31?