During March, the first month of operations, Smith Corporation worked on one job, A1. Smith Corporation applies overhead to jobs using a predetermined overhead rate based on direct labour hours. At the beginning of the year, the company estimated that it would work 45,000 direct labour hours and that it would incur $720,000 in manufacturing overhead cost. Summary data concerning this job is as follows: a. Direct materials used were $50,000. Indirect materials used were $10,000. b. Indirect labour was $6,000. Direct labour was $75,000. c. Advertising costs were incurred, $4,100 d. Manufacturing overhead incurred on credit (not including indirect materials and indirect labour) totaled $40,000. e. Manufacturing overhead was applied to the job. There were 3,400 direct labour hours worked on Job A1. f Job A1 was completed. Required: 1. Prepare general journal entries on the general journal provided to record the above events. (Identify each journal entry by letter in the date column.) (9 marks) 2. Is the overhead over applied or under applied and by how much? A separate table below the general journal is provided for your response (2 marks) 3. Give one reason why a predetermined manufacturing overhead rate is used rather than the actual manufacturing overhead throughout the year. (1 mark)