2. (8 points) Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and machine hours would be 8,000. The following information pertains to December of the current year: Job 10 $16,000 Job 11 $26,000 Job 12 $38,000 Total $80,000 Work-in-process, Dec. 1 December production activity: Materials requisitioned Direct labor cost Machine hours Labor hours $4,000 2,400 400 hrs. 120 hrs. $4,800 3,600 700 hrs. 180 hrs. $7,200 4,000 900 hrs. 200 hrs. $16,000 10,000 2,000 hrs. 500 hrs. Actual manufacturing overhead cost incurred in December was $61,000. Required: A. Compute the predetermined overhead application rate. B. Determine the total cost associated with each job. C. If Jobs 10 and 12 were completed, prepare the journal entry to move the cost. D. If Job 10 was delivered to customers that paid $50,000 cash, prepare the journal entries. E. What is the gross margin for Job 10? F. What is the cost assigned to ending work in process? Assuming no beginning finished goods what is the cost assigned to ending finished goods? How much was overhead over/underapplied? G. H