EEC. Em, Ltd uses a job-order costing system and a predetermined overhead rate based on _ direct Woost. The estimated overhead for 2011 was $540,000 and estimated direct 1.0.0525 costs were $900,000. (Hint: the this to get a predetermined rate} On January 1, 2011, the companyr had the following inventories: Raw materials $0 1I.I"|||'orlt in process {Job A} 15,000 Finished goods 0 The following information pertains to the company's activities for the month of January 2011: a. Purchased $150,000 of materials on account. b. Job B and Job C were started during the month. c. Materials requisitioned for production WHMJW, of which $5,000- was for indirect materials. Job A $45,000; Job E 510000; Job {3 $22,000 d. Factory payroll for the monlh W$10000 of which $15,000 was for indirect labor, The direct [anagwas distributed as follows: Job A $20,000; Job B $35,000; Job {3 $30,000 e. The company made adjusting entries at the end of January to record the following expenses: Depreciation$5,000 Expired insurance 1,000 f. Ellb manufacturing costs not yet paid totaled $30,550. g. Overhead was applied using the predetermined overhead rate based upon direct [showm- h. Jobs A. and B were completed during the month. 1. Job A was sold on account during the month at a selling price of 120% of manufactunng cost. Prepare the journal entry to dispose of the underor overapplied overhead if the underor over-applied overhead is immaterial lQuestion: The answer for under-applied overhead is 55.5%. How.r was $6,550 obtained