Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in production (not on the basis of raw materials purchased). In computing a predetermined overhead rate at the beginning of the year, the company's estimates were as follows: manufacturing overhead cost, $1,054,000; direct materials to be used in production, $620,000. The company's inventory accounts at the beginning and end of the year were as follows: Raw Materials Work in Process Finished Goods Beginning $ 74,000 76,000 412,000 Ending $ 21,200 162,000 272,000 The following actual costs were incurred during the year: $498,000 96,000 Purchase of raw materials (all direct) Direct labour cost Manufacturing overhead costs: Indirect labour Property taxes Depreciation of equipment Maintenance Insurance Rent, building 182,000 49,200 272,000 96,200 8,200 192,000 Required: 1-a. Compute the predetermined overhead rate for the year. Predetermined overhead rate % 1-b. Compute the amount of under-or overapplied overhead for the year. overhead is 2. Prepare a schedule of cost of goods manufactured for the year. GITANO PRODUCTS Schedule of Cost of Goods Manufactured Direct materials: Total raw materials available Raw materials used in production Total manufacturing costs Cost of goods manufactured 3. Compute the cost of goods sold for the year. (Do not include any under- or overapplied overhead in your cost of goods sold figure.) Cost of goods sold 4. Job 215 was started and completed during the year. What price would have been charged to the customer if the job required $9,700 in direct materials and $3,900 in direct labour cost and the company priced its jobs at 30% above cost to manufacture? Price to customer 5. Direct materials made up $25,200 of the $162,000 ending work-in-process inventory balance. Compute the missing amounts. Amount Direct materials $ 25,200 Direct labour Manufacturing overhead Work-in-process inventory $ 162,000