ABC Company uses a job-order costing system and applies manufacturing overhead based on machine hours. For 2020, ABC Co. estimated manufacturing overhead to be $150,000, and the estimated machine hours are 25,000. The following information is for the last month in 2020:

Job 11

Job 12

Job 13

Totals

Work in process, beginning	$10,000	$3,000	$2,000	$15,000
Direct materials	1,000	950	500	2,450
Direct labour costs	900	300	150	1,350
Machine hours	250	150	50	450

Actual manufacturing overhead costs incurred in the month were $3,500. There was no beginning balance in the manufacturing overhead account at the start of the month.

Required -

a) Calculate the pre-determined overhead rate.

b) Calculate the total cost for each job.

c) If Job No. 11 was completed during the month, what is the balance of WIP at the end of the month?

d) What is the balance of the manufacturing overhead account at the end of the month? Is manufacturing overhead over or underapplied?

e) Prepare the journal entry to close underapplied or overapplied overhead to cost of goods sold.