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Question 1 Answer all parts of this question. 6. Job 215 was started and completed during the year. What price would have been charged to the customer if the job required 15,000 in direct materials and 7.000 in direct labour costs and the company priced its jobs at 25% above cost la manufaclure? (4 marks) (Total - 25 marks) City Products operates a job-order cost system and applies overhead costs to jobs on the basis of direct materials used in production not on the basis of raw materials purchased). In computing a predetermined overhead rate at the beginning of the year, the company's cstimates were manufacturing overhead cost, f1.200,000, and direct matcrials to be used in production, 800,000. The company's inventory accounts at the beginning and end of the year were: Beginning Ending Raw Materials Work in progress Finished goods 80,000 200,000 560,000 80,000 160,000 700,000 The following actual costs were incurred during the year: 900,000 Purchase of direct raw materials Direct labour cost Manufacturing overhead 240,000 Indirect labour Property taxes Depreciation of equipment Maintenance Insurance Rent, building 300,000 104,000 520,000 210,000 18,000 300,000 1. Compute the predetermined overhead rate for the year. (4 marks) 2. Campule the amount of under or over-applied overhead for the vear. (4 marks) 3. Prepare a schedule of cost of goods manufactured for the year. (5 marks) 4. Compute the cost of goods sold for the year. Do not include any under-or over-applied overhead in your cost of goods sold figure. (4 marks) 5. What options are available for the disposing of under- or over-applied overhead? (4 marks) Page 2 of 6 Page 2 of 6 Page 3 of 6