Discussion Question Week6 Job Costing Miller Company uses a perpetual inventory system and has a highly labour intenisive production process, so it assigns manufacturing overhead based on direct labour cost Miller's predetermined overhead application rate for zos8 was computed from the tollow data ng Total estimated factory overhead suaya.5oo Total estimated direct labour cost $850,000 The following activities took place in the work in process inventory during August August i Bal. Direct Materials Used WIP Inventory A/C 18,600 136,625 Other transactions incurred - Indirect material issued to production was s22.500 Total manufacturing labour incurred in April was szo5ooo. 70% of chis amount represented direct labour. Other manufacturing overhead costs incurred for April amounted to $151.600 - Two jobs were completed with total costs of sa3o,8oo & sioo,6oo respectively They were sold on account at a mark-up of 40% on cost. Reguired i) Compute Miller's predetermined manufacturing overhead rate for z018 i) State the journal entries necessary to record the above transactions in the general journal a) For direct materials used in August b) For indirect material issued to production in August c) For total manufacturing labour incurred in August d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred ) For manufacturing overhead allocated for August g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account Calculate the manufacturing overhead variance for Miller and state the jour ,to disnose of the variance