Donner Corporation Donner Corp. manufactures specialized circuit boards, which are used in consumer electronic products. Donner uses a job-order costing system to account for production costs. Donner allocates manufacturing overhead costs using direct manufacturing labor costs. The following are the budgeted and actual direct manufacturing labor costs and manufacturing overhead costs estimated and incurred, respectively, for the current period: Budgeted Direct manufacturing labor costs Manufacturing overhead costs 1,000,000 1,750,000 Actual 980,000 1,862,000 At the last month of the fiscal year, Donner completed production job #626 for several hundred circuit boards and incurred the following production costs processing that order: Direct materials used in production Direct manufacturing labor costs Required $40,000 30,000 1. Compute the actual and the predetermined (or budgeted) mfg. overhead rates. 2. Compute the manufacturing costs incurred on production job #626 under: (a) actual costing: (b) normal costing. 3. Compute the amount of underapplied or overapplied manufacturing overhead costs (overhead variance) under normal costing. 4. The accounting books show the following balances of applied manufacturing overhead remaining at each respective account at the end of accounting period: Cost of goods sold Finished goods inventory Work-in-process inventory $1,600,000 550,000 350,000 Prepare a journal entry to dispose of the under- or overapplied manufacturing overhead using the Proration Method.