Cheapo Company makes home office furniture in two departments. The company currently uses a plantwide, job-order costing system. The predetermined plantwide rate is based on Direct Labour Hours. At the beginning of the year, Cheapo made the following estimates: Job 127, which contained 25 units, was started and completed in the current month. The cost records include the following: The following data represents Actual results for the entire year: REQUIRED: SHOW ALL CALCULATIONS \& LABEL ALL NUMBERS 1. Compute the unit product cost using the current plantwide rate. 2. Assume Cheapo decided to use departmental rates rather than a plantwide rate. The activity base for the Preparation department is Machine hours and for the Fabrication department, it's direct labour hours. Calculate the unit cost of Job 127. 3. At the end of the year, compute the amount of under or over applied overhead for each department. 4. Prepare the journal entry to close out the amount of under or overapplied overhead to COGS. What is the effect of these entries on income