EX02 Cardella Company applies overhead on the basis of direct labour cost. The company estimates annual overhead costs will be $760,000, annual direct labour cost will be $950,000. During February, Cardella works on two jobs: A16 and B17. Summary data concerning these jobs are as follows. Manufacturing costs incurred Purchased $54,000 of raw materials on account. Factory labour $76,000, plus $4,000 employer payroll taxes. Manufacturing overhead exclusive of indirect materials and indirect labour $59,800. Assignment of costs Direct materials: ........................... Job A16 $27,000, Job B17 $21,000 Indirect materials: ...................................................................... $3,000 Direct labour: ............................... Job A16 $52,000, Job B17 $26,000 Indirect labour: .......................................................................... $2,000 The company completed Job A16 and sold it on account for $150,000. Job B17 was only partially completed. Instructions a) Compute the predetermined overhead rate. b) J ournalize the February transactions in the sequence followed in the chapter. c) What was the amount under- or overapplied manufacturing overhead