Calgary Injection Moulding operates a job-order costing system and applies overhead cost to jobs on the basis of machine-hours. In computing an overhead rate for the year, the company's estimates were as follows: manufacturing overhead cost, $248,000, and machine-hours, 40,000. The company has provided the data in the following table:

Beginning Ending

Raw Materials $21,000 $16,000

Work in Process $44,000 $40,000

Finished Goods $68,000 $60,000

The following actual costs were incurred during the year:

Purchase of raw materials (all direct) $133,000

Direct labour $80,000

Machine-hours 42,000

Manufacturing overhead costs $264,000

Required:

1. A. Compute the predetermined overhead rate for the year.

B Compute the amount of under applied or over applied overhead for the year. Using the cost of goods sold account, allocate the over applied or (under applied) overhead at year-end?

4. Job 137 was started and completed during the year.What price would have been charged to the customer if the job required $3200 in materials, $4200 in direct labour and 350 machine hours to complete?Assume the company prices its jobs at 40% above the job's cost according to accounting system.