A) Company ARE uses direct labour hours as the allocation base for its manufacturing overhead. In its 2023 budget, ARE estimated that it would have 30,000 direct labour hours, 15,000 machine hours, and manufacturing overhead (MOH) of $535,000. For 2023, the actual direct labour hours were 30,600, actual machine hours were 14,700, and the actual manufacturing overhead was $585,825. During 2023, ARE started and finished Job 456, one of several jobs for the year. Job 456 had 28 direct labour hours.

What was the total dollar amount of manufacturing overhead allocated to Job 456?

B)Company ERA is at its period end. ERA uses Absorption Accounting. Its Manufacturing Overhead clearing account has a CR balance of $309,375. During the period, ERA had several expenses that it had incurred, but not yet recognized: i. Rent Expense $150,000 (25% office; 75% factory); ii. Utilities Expense $125,000 (25% office; 75% factory); iii. Indirect Factory Wages $75,000; iv. Office Salaries $50,000.

Required: a. Do the journal entry required for the unrecognized expenses. Assume all payments were made in cash. b. What is the new balance of the Manufacturing Overhead account? c. Based on the new balance of the Manufacturing Overhead account, state if the account is underapplied or overapplied? d. Based on your last answer, is there another journal entry required to close the period? If so, please write the required journal entry. If necessary, assume, production breakdown for the period is 30% WIP, 30% F/G and 40% COGS.

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