Gitano Products operates ajob-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, $650,000; direct materials to be used in production, $500,000. The company's inventory accounts at the beginning and end of the year were as follows: Beginning Ending Raw Materials $ 80,000 $ 20,000 Work in Process 70,000 150,000 Finished Goods 400,000 260,000 The following actual costs were incurred during the year: Purchase of raw materials (all direct) $510,000 Direct labour cost 90,000 Manufacturing overhead costs: Indirect labour 170,000 Property taxes 48,000 Depreciation of equipment 260,000 Maintenance 95,000 Insurance 7,000 Rent, building 180,000 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 is2. Prepare a schedule of cost of goods manufactured for the year. 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.) 4. Job 215 was started and completed during the year. What price would have been charged to the customer if thejob required $8,500 in direct materials and $2,700 in direct labour cost and the company priced itsjobs at 40% above cost to manufacture? _:| 5. Direct materials made up $48,000 ofthe $150,000 ending workinprocess inventory balance. Compute the missing amounts. Direct materials $ 48,000 Direct labour Manufacturing overhead Work-in-process inventory $ 150,000