Arbo Corporation, which uses a job-costing system, had two jobs in process at the start of February 2020: Job no. B4 with a cost of $110,000 and job no. C1 with a cost of $12,000. The following information is available:

• The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $3,276,000 and 104,000 hours, respectively.

• The company worked on four jobs during February. Direct materials used, direct labor incurred, and machine hours consumed were:

Job No.

Direct Material

Direct Labor

Machine Hours

B4	148,000	130,000	1,500
C1	155,000	99,000	1,100
C2	220,000	140,000	2,500
C3	70,000	85,000	1,400

• Manufacturing overhead during February included charges for depreciation ($47,000), indirect labor ($78,000), indirect materials used ($38,000), and other factory costs ($41,000).

• Arbo completed job no. B4 and job no. C1. Job no. B4 was sold for cash, producing a gross profit of $142,600 for the firm.

Required:

1. Compute the company's predetermined overhead application rate. State it in terms of cost per machine hour.

Predetermined overhead rate per machine hour:

1. Compute Total Manufacturing costs (use applied overhead - not actual overhead).

Total manufacturing costs:

1. Compute the (unadjusted) Cost of Goods Sold.

Cost of goods sold:

1. Compute the Cost of Goods Manufactured (use applied overhead - not actual overhead).

Cost of goods manufactured:

1. Compute the cost of Ending Work-in-Process Inventory (use applied overhead - not actual overhead).

Cost of Ending Work-In-Process Inventory:

1. Compute (and identify) the amount of over- or under-applied overhead.

Over- or under-applied overhead (and which one):

Show computations here: