BOP Company matures city harniture and uses corner At the end of 2099, the town estimates were provided for overhead costs and direct labour hours (the cost driver allocation base Overhead costs Direct labour hours 5420.000 60,000 The following are account balances as of December 31, 2019 and job information for January 2020 2 Jobs Balace 10 12 SP $23.500 SUSA In Costs Added Direct Direct materials Labour Overhead $6.000 515.500 $14.000 $6620 54.RO $5.000 Direct labour hours used in January 100 2 700 600 12 14 Actual manufacturing overhead costs incurred during January were 15 These costs will be paid for in February, 2020 16 $36,000 17 TT-2 was started in December then completed, billed and delivered to the customer in January. TT-3 was started in December and completed in January. Job CT-4 was started in December but was still incomplete as of January 31, 2020 18 19 Required: 20 21 1 Calculate the company's predetermined overhead rate (POR) for the year. (2 marks) Fehmatamani 1 Required 1. Calculate the company's predetermined overhead rate (POR) for the year. (2 marks) Estimated manufacturing overhead Estimate direct labor hour POR 32 24 26 2. Calculate the amount of overhead applied to each job in January (3 marks) 25 29 TT.3 CT24 30 31 Applied overhead 33 3. Prepare the following journal entries for January. Debits must be recorded before credits (8 marks): 34 a. To record the direct materials used in production 35 36 Debit Credit 37 38 39 40 b. To record direct labour used in production 41 Debit Credit 43 44 Dett Las To record the overhead applied to production Credit 4 Calculate the balances at anuary 31st for Work in process, Finished Goods and cont of Goods Sold before adjusting for over or under applied overhead. (3 market 50 9 Total 61 Work in process Finished goods 50 Cost of goods sold 54 ES 5. Calculate the over or under-applied overhead for January (2 mars BE 67 55 69 Cost of goods sold 5. Calculate the over or under-applied overhead for January (2 marks) -If the company followed IAS 2 for closing over or under-applied overhead, describe how the over or under-applied werhead would be treated. (2 marks) based on Part 5 above