3. 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: Work-in-process, Dec. 1 December production activity: Materials requisitioned Direct labor cost Machine hours Labor hours Job 10 $16,000 Job 11 $26,000 Job 12 $38,000 Total $80,000 $ 4,000 $ 4,800 $ 7,200 $16,000 $ 2,400 $ 3,600 $ 4,000 $10,000 400 700 900 120 180 200 2,000 500 Actual manufacturing overhead cost incurred in December was $61,000. Compute the predetermined overhead application rate. Determine the total cost associated with each job. If Jobs 10 and 12 were completed, prepare the journal entry to move the cost. If Job 10 was delivered to customers that paid $50,000 cash, prepare the journal entries. What is the gross margin for Job 10? Required: A. B. C. D. E. F. G. H. How much was overhead over/underapplied? What is the cost assigned to ending work in process? Assuming no beginning finished goods what is the cost assigned to ending finished goods?