2. Government Slice, Inc. (GSI), designs and builds municipal golf courses. A course the company was working on was just finished in December of the year just ended, 2018, for a city named Blair, and the company is figuring out the cost of the job (using a job order costing system). The company just began a new job for the town of Burkitt, late in December, but only the designers and gardeners have been involved, no direct materials have been used for the Burkitt job so far. The direct materials for a job consists mostly of sand, grass and turf, and shrubs or trees. The direct labor cost is based on gardener's hours spent on a job, at a rate of $ 23 per hour. The manufacturing overhead for the company primarily relates to the designing work costs, and is applied to jobs (for each customer) based on the number of designer hours per job (customer). The total year's manufacturing overhead budget was $ 300,000, and the estimated total designer hours to be spent during the year was 5,000 hours. Calculate the predetermined overhead rate per designer hour, and apply manufacturing overhead to the Blair job, given the information below. The client (the town of Blair) was quoted a total price of $2,000,000. for the entire job, and thus was billed that amount. The Inventory balances were as follows: Direct Materials (sand, turf, trees) Work in Process Beginning balance 1/1/2018 $ 85,000 Beginning balance 1/1/2018 $ 430,000 (Blair job) Ending balance 12/31/2018 Ending balance 12/31/2018 $ 60,000 $ 45,000 (Burkitt job) Purchases of Direct Materials during 2018 amounted to $ 525,000. Direct Labor hours for the Blair job were 16,500 hours during 2018. The designers spent 5200 hours during the year, related to the Blair job just finished. What was the cost of the Blair job, and thus, was there a "profit" for it? (Since over or under allocated overhead is generally immaterial in amount the total is always closed to costs of jobs each year, and is not adjusted into the cost of jobs completed, thus you need not make any actual overhead adjustment to the Blair job.) Given that the overhead budget of designing work costs of $ 300,000 was exactly the amount of overhead incurred, was there an under or over allocated overhead amount? Just tell me if overhead was over or under allocated, and how you know, you need not calculate the amount