AHHA, Corp. uses job costing system for its products. The following information relates to the month of October: Material: Others: Inventories, Oct 1. Balances: Building occupancy costs: Raw Material 21,000 Factory Facilities 25,600 Work in Process (Job AH1) 78.000 Sales offices 6,400 Purchases of raw materials in October 270.000 Administration offices 8.000 Usage of indirect material in October 64.000 Total 40.000 Labor: Others (continued): Production equipment Direct labor wages $28,000 costs: Indirect labor wages 125,000 Power 16,400 Repairs and maintenance 6,000 Depreciation 4.000 26,400 Total During October, there are three outstanding jobs: Job AHI, Job AH2, and Job AH3. By the end of October, Job AH1 is finished and sold to client, Job AH2 had just finished production and moved out of the plant. Job AH3 is still in production. Details on the three jobs are as follows: Job AHI Job AH2 Job AH3 Direct Material used $30,000 $75.000 $80,000 Direct Labor Hours 7,000 6,000 9.000 The firm's job costing system uses direct labor hour as the cost driver for overhead application. The plant can operate at 115.000 direct-labor hour per year manufacturing overhead (MOH) is $575.000. Required: 1. Calculate the predetermined overhead rate for the year (2%) 2. Calculate total overhead applied in October (2%) Budgeted 3. Calculate the total cost of Jobs: AH1, AH2, and AH3 (4.5%) [hint: calculate direct labor cost per hour] 4. Compute actual manufacturing overhead cost incurred in October (2%) 5. Compute the over/underapplied overhead in October (2%): prepare journal entry to close the over/underapplied overhead in COGS (2%) 6. Compute the operating income, assuming sales is equal 150% of cost (2%) 7. Compute balance of Finished Goods Inventory (2%) 8. Compute WIP ending (2%) 9. Explain the difference between normal costing and actual costing. Which one applies to AHHA, Corp (1.5%) and why do you think AHHA, Corp use that method? (1%)