Cowbell Incorporated uses a job-order costing system and a budgeted factory overhead rate based on machine hours. At the beginning of the year, Cowbell estimated manufacturing overhead for the year at $50,000. Machine hours were estimated at 8,000. The following information pertains to December of the current year:

Job No. 77

Job No. 79

Job No. 73

Totals

Work in process, December 1

$6,000

$2,500

$1,500

$10,000

Materials requisitioned

$1,200

$ 800

$ 650

$ 2,650

Direct labour costs

$1,000

$ 400

$ 250

$ 1,650

Machine hours

300

200

100

600

Actual manufacturing overhead costs incurred in December were $5,000 of which $1,000 was depreciation on the factory building and $500 was depreciation on the production equipment. a. Compute the budgeted factory overhead application rate. b. Prepare the journal entries to record the activity for the month of December. c. Determine the cost associated with each job. d. If Job No. 77 was completed during December, what is the balance of Work in Process as at December 31? e. If there was no balance in the Overhead Control account on December 1, what is the balance as at December 31? f. Prepare the journal entry to close underapplied or overapplied overhead to cost of goods sold.