12.3 Golden Bear Company is a manufacturing company with a fiscal year that runs from July 1 to June 30. The company uses a normal job-order accounting system for its production costs. A predetermined overhead rate based on direct labor hours is used to apply overhead to individual jobs. For the 19881989 fiscal year, the predetermined overhead rate is based on an h46 expected level of activity of 120,000 direct labor hours and the following cost-volume (or flexible budget) formula: T = $216,000+ $3.25x where T estimated total overhead x = direct labor hours The following information presented is for November 19X8. Jobs 87-50 and 87-51 were completed during November. $ 10,500 54,000 112.500 Inventories November 1, 1978: Raw materials and supplies Work in process (Job 87-50) Finished goods Purchases of raw materials and supplies: Raw materials Supplies Materials and supplies requisitioned for production: Job 87-50 Job 87-51 Job 87-52 Supplies Total $135,000 15,000 $ 45,000 37,500 25,500 12.000 $120,000 Factory direct labor hours: Job 87-50 3,500 DLH Job 87-51 3,000 DLH Job 87-52 2,000 DLH Labor costs Direct labor wages $51.000 Indirect labor wages (4,000 hours) 15,000 Supervisory salaries, factory 6,000 Building occupancy costs (heat, light, depreciation, etc.): Factory facilities $6,500 Sales offices 1,500 Administrative offices 1,000 Total $9,000 Factory equipment costs: Power Repairs and maintenance Depreciation Other Total $4,000 1,500 1,500 1,000 $8.000 (a) Determine the predetermined overhead rate to be used to individual jobs during the 1978-1979 fiscal year. (b) Determine the total cost of job 87-50. (c) Determine the over- or underapplied overhead for November 19x8