Advanced Marine Technologies Ltd (AMT) manufactures outboard motors and an assortment of other marine equipment. The company uses a job costing system and manufacturing overhead is applied on the basis of machine hours. Estimated manufacturing overhead for the year is $2,868, 000, and management expect that 75,000 machine hours will be used. The following are transaction relevant to April: 1. The firm purchased marine propellers from Headland Marine Corporation for $8,850 on account. 2. A requisition was filed by the Gauge Department supervisor for 500 kilograms of clear plastic. The material cost $0.55 per kilogram. 3. The Motor Testing Department supervisor requisitioned 200 metres of electrical wire, which is considered an indirect material. The wire cost $0.20 per metre. 4. The month's electricity bill of $1,000 was paid in cash. Most of the electricity is incurred by production. 5. Direct labour costs incurred for the month were $145,000. 6. April's insurance cost was $2,500 for insurance on the cars driven by sales personnel. The policy had been prepaid in March. 7. Metal tubing costing $6,000 was purchased on credit. 8. A cash payment of $1,700 was made on outstanding accounts payable. 9. Indirect labour costs of $26,000 were incurred during April. 10. Depreciation on equipment for April amounted to $22,000. 11. The business accounted for the applied manufacturing overhead. 12. Job number D45, consisting of 50 tachometers, was finished during April. The total cost of the job was $2,200. 13. During April, 8,000 machine hours were used. 14. Sales on account for April amounted to $350,000. The cost of goods sold in April was $139,000.

1. Calculate the company's predetermined overhead rate for the year.

2. Prepare journal entries to record the following events, which occurred in April