1) The predetermined overhead rate for Shilling Manufacturing is based on estimated direct labor costs of $350,000 and ming that it is not material in amount. 2) Drop Anchor takes special orders to manufacture sail boats for high-end customers. Prepare journal entries to record the transactions below and prepare job cost sheets for Septernber. a. Purchased raw materials on credit, $145,000. b. Materials requisitions: Job 240,$48,000; Job 241,$36,000; Job 242, $42,000; indirect materials were $12,000. c. Time tickets used to charge labor to jobs: Job 240,$40,000; Job 241, $30,000; Job 242,$35,000, indirect labor is $25,000. d. The company incurred the following additional overhead costs: depreciation of factory building, $70,000; depreciation of factory equipment, \$60,000; expired factory insurance, \$10,000; and utilities and maintenance cost of \$20,000, all of which were paid in cash. c. Applied overhead to all three jobs. The predetermined overhead rate is 190% of direct labor cost. f. Transferred jobs 240 and 242 to Finished Goods Inventory. g. Sold job 240 for $300,000 for cash. h. Closed the under-or over-applied overhead account balance. 3) Franklin Manufacturing uses a job order costing system that charges overhead to jobs on the basis of direct labor cost. Franklin used the following cost predictions: overhead costs $1,285,750, and direct labor costs of $695,000. At year-end, the company's records show that actual overhead costs for the year are $1,278,800, and actual direct labor costs are $692,000. a. Determine the predetermined overhead rate for the year. b. Compute the amount of overapplied or underapplied overhead. c. Prepare the adjusting entry for over- or underapplied overhead, assuming the amount is immaterial