Custom Automobile Restoration Shop (CARS) is a small shop dedicated to high-quality restorations of vintage cars. Although it will restore an automobile that a customer already owns, usually the shop buys an old vehicle, restores it, and then sells it in a private party sale or at a classic-car auction. The shop has been in existence for 10 years, but for the sake of simplicity, assume it has no beginning inventories for 2021. Five automobile restoration projects were worked on during 2021. By the end of the year, four of these projects were complete and three of them had been sold. The following selected data are from CARS' 2021 budget. Advertising $ 11, 810 Direct materials 215,000 Direct labor 193, 800 Rent on office space 10 , 500 Rent on factory space 31, 500 Indirect materials 15,900 Maintenance costs for factory equipment 5 , 400 Utilities costs for office space 1, 800 utilities costs for factory space 3,800 Depreciation on factory equipment 11, 400 Machine hours expected to be worked 3,800 Direct labor hours expected to be worked 6, 200 The following information relates to production events during 2021. . Raw materials were purchased for $197,900. . Materials used in production totaled $191,200; $14,500 of these were considered indirect materials costs. The remaining $176,700 of direct materials costs related to individual motorcycle jobs as follows. Direct Job Number Materials Cost 701 $ 40, 500 702 33, 100 703 39, 200 704 37,000 705 26, 900 . Labor costs incurred for production totaled $168,500. The workers are highly skilled craftsmen who require little supervision. Therefore, all of these costs were considered direct labor costs and related to individual jobs as follows.. Labor costs incurred for production totaled $168,500. The workers are highly skilled craftsmen who require little supervision. Therefore, all of these costs were considered direct labor costs and related to individual jobs as follows. Direct Labor Job Number Cost 701 $ 37,400 702 39, 200 703 45, 100 704 28, 200 705 18 ,600 Paid factory rent of $27,700. Recorded depreciation on factory equipment of $11,900. Made $5,200 of payments to outside vendors for maintenance of factory equipment. Paid factory utilities costs of $3,900. Applied manufacturing overhead using a predetermined rate of $17.89 per machine hour. The 3,620 machine hours that were used relate to each job as follows. Machine Hours Job Number Worked 701 726 702 790 703 850 704 820 705 440 Completed all jobs except Job 705 and transferred those projects to finished goods. Sold three jobs for the following amounts: Job Number Sales Price 701 $ 125, 200 702 117 , 600 703 110, 400 . Closed the Manufacturing Overhead account to transfer any overapplied or underapplied overhead to the Cost of Goods Sold account. Required a. Assume CARS had used direct labor hours (versus machine hours) as its cost driver. Compute its predetermined overhead rate Note: Round your answer to 2 decimal places. b. Determine the ending balance in Raw Materials Inventory. c. Determine the ending balance in Finished Goods Inventory. d. Determine the ending balance in Work in Process Inventory. e. Determine the costs of goods manufactured. f. Determine the amount of Cost of Goods Sold. " Determine the amount of airner marin that was earned on labe 701 7010 and 702Completed all jobs except Job 705 and transferred those projects to finished goods. Sold three jobs for the following amounts: Job Number Sales Price 701 $ 125, 200 702 117, 600 703 110, 400 . Closed the Manufacturing Overhead account to transfer any overapplied or underapplied overhead to the Cost of Goods Sold account. Required a. Assume CARS had used direct labor hours (versus machine hours) as its cost driver. Compute its predetermined overhead rate. Note: Round your answer to 2 decimal places. b. Determine the ending balance in Raw Materials Inventory. c. Determine the ending balance in Finished Goods Inventory. d. Determine the ending balance in Work in Process Inventory. e. Determine the costs of goods manufactured. f. Determine the amount of Cost of Goods Sold. g. Determine the amount of gross margin that was earned on Jobs 701, 702, and 703. h. Determine the amount of overapplied or underapplied overhead that existed at the end of the year. Note: For all requirements, round your intermediate calculations to 2 decimal places. a. Predetermined overhead rate per hour b. Ending balance in Raw Materials Inventory c. Ending balance in Finished Goods Inventory d. Ending balance in Work in Process Inventory e. Cost of goods manufactured f. Cost of goods sold g. Gross margin for Job 701 g. Gross margin for Job 702 g. Gross margin for Job 703 h. Over- or underapplied overhead