Anna Jewer was just hired as a management accountant at Lewis Corporation in downtown Toronto. Lewis Corporation allocates overhead to products using direct labour hours. Anna has compiled the following information at the beginning and end of the year as follows: Estimated costs and hours at the beginning of the year: Overhead costs Direct labour hours Machine hours $795,000 30,000 hours 40,000 hours Actual costs and hours at the end of the year: Direct labour cost Factory depreciation Factory Insurance Indirect materials Indirect labour Property taxes on administrative building Direct labour hours Machine hours $1,350,000 $200,000 $150,000 $30,000 $280,000 $110,000 27,000 hours 38,500 hours In the space provided below, answer the following questions showing all computations (no credit will be awarded if computations are not shown): 1. Compute the predetermined overhead rate for the year (6 marks). 2. Compute the actual overhead costs incurred. (7 marks) 3. Compute the (1) overhead costs allocated to jobs during the year and (2) the costs of over- or under-allocated overhead at the end of the year. (8 marks) 4. Explain how would the company dispose of the over- or under-allocated overhead and why would the company need to make that adjustment from a financial accounting perspective