Free Response: MUST SHOW YOUR 1. ABC Entertaiment faces many situations where it needs to apply decision tools such as using a job cost system to determine a film's profitability. For example. Assume ABC Entertainment uses a job order cost system and applies overhead to production of its films on the basis of direct labor cost. In computing a predetermined overhead rate for the year 2021, the company estimated film production overhead to be $22,000,000 and direct labor costs to be $20,000,000. In addition, it developed the following information Actual Costs Incurred During 2021 for its new movie In Broad Daylight: Direct materials used Direct labor cost incurred Insurance on studio (overhead) Indirect labor (overhead) Studio maintenance (overhead) Depreciation on studio equipment (overhead) Rent on studio building (overhead) $30,000,000 $21,000,000 $500,000 $7,500,000 $1,000,000 $11,000,000 $4,000,000 A. Compute the predetermined overhead rate for 2021 (show work): B. Compute the amount of applied overhead (show work): C. What is the total cost of making the film: In Broad Daylight? (show work): D. Compute the amount of actual overhead (show work): E. Is overhead over or under applied and by how much (show work): F. Record the journal entry to adjust the difference in the MOH account