Garcia, Incorporated, uses a job-order costing system for its products, which pass from the Machining Department, to the Assembly Department, to finished-goods inventory. The Machining Department is heavily automated; in contrast, the Assembly Department performs a number of manual-assembly activities. The company applies manufacturing overhead using machine hours in the Machining Department and direct-labor cost in the Assembly Department. The following information relates to the year just ended: Items Budgeted manufacturing overhead Actual manufacturing overhead Budgeted direct-labor cost (based on practical capacity) Actual direct-labor cost Budgeted machine hours (based on practical capacity) Actual machine hours Machining Department $ 4,000,000 4,270,000 1,500,000 1,450,000 400,000 The data that follow pertain to job number 775, the only job in production at year-end. Machining Department Items Assembly Department Direct material $ 6,600 Direct labor $ 27,900 Machine hours 360 $ 58,700 150 $24,500 425,000 Assembly Department $ 3,080,000 3,050,000 5,600,000 5,780,000 100,000 110,000 Selling and administrative expense amounted to $2,500,000. PR 3-48 (Algo) Part 2 Compute the cost of the company's year-end work-in-process inventory. Selling and administrative expense amounted to $2,500,000. PR 3-48 (Algo) Part 2 Compute the cost of the company's year-end work-in-process inventory. 2. Compute the cost of the company's year-end work-in-process inventory. Answer is complete but not entirely correct. Total cost $ 153,430 Items Budgeted manufacturing overhead Actual manufacturing overhead Budgeted direct-labor cost (based on practical capacity) Actual direct-labor cost Budgeted machine hours (based on practical capacity) Actual machine hours Machining Department Assembly Department $ 4,000,000 $ 3,080,000 4,270,000 3,050,000 1,500,000 5,600,000 1,450,000 5,780,000 400,000 100,000 425,000 110,000 The data that follow pertain to job number 775, the only job in production at year-end. Assembly Department Items Machining Department Direct material $ 24,500 Direct labor Machine hours $ 27,900 360 $ 58,700 150 $ 6,600 Selling and administrative expense amounted to $2,500,000. PR 3-48 (Algo) Part 3 Determine whether overhead was under- or overapplied... 3. Determine whether overhead was under- or overapplied during the year in the Machining Department.