Fairlea Inc. (Fairlea) uses a job cost system which applies overhead on the basis of direct labour hours. At the beginning of the quarter, Fairlea estimates total fixed manufacturing overhead costs of $112,500 and total direct labour hours of 15,000 . At the end of the quarter, Fairlea tabulates the following actual information. Calculate Required: 1. Calculate the cost of goods manufactured. 2. Calculate the cost of goods sold before prior to any adjustment for under or overapplied overhead. 3. Prepare a journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold. Is such an entry appropriate in this situation? Why or why not? 4. Analyze the under or overapplied manufacturing overhead cost into two separate components: amount due to incorrect estimate of the annual manufacturing overhead costs and an amount due to incorrect estimate of the annual direct labour cost. Fairlea Inc. (Fairlea) uses a job cost system which applies overhead on the basis of direct labour hours. At the beginning of the quarter, Fairlea estimates total fixed manufacturing overhead costs of $112,500 and total direct labour hours of 15,000 . At the end of the quarter, Fairlea tabulates the following actual information. Calculate Required: 1. Calculate the cost of goods manufactured. 2. Calculate the cost of goods sold before prior to any adjustment for under or overapplied overhead. 3. Prepare a journal entry to close any under or overapplied manufacturing overhead cost to cost of goods sold. Is such an entry appropriate in this situation? Why or why not? 4. Analyze the under or overapplied manufacturing overhead cost into two separate components: amount due to incorrect estimate of the annual manufacturing overhead costs and an amount due to incorrect estimate of the annual direct labour cost