Grater Products uses a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The predetermined overhead rate in the Grinding Department is based on machine hours, and the rate in the Finishing Department is based on direct labor hours. At the beginning of the most recent year, the company's management made the following estimates for the year:

	Grinding	Finishing
Machine hours...............................	80,000	19,000
Direct labor hours..........................	30,000	60,000
Direct materials cost......................	$195,000	$282,000
Direct labor cost............................	$260,000	$520,000
Manufacturing overhead cost........	$420,000	$705,000

Job 424 entered into production on April 19 and was completed on May 5. The companys cost records show the following information about the job:

Job 424	Grinding	Finishing
Machine hours...............................	280	65
Direct labor hours..........................	70	140
Direct materials cost......................	$940	$1,100
Direct labor cost............................	$610	$1,880

At the end of the year, the records of Grater showed the following actual cost and operating data for all jobs worked on during the year:

	Grinding	Finishing
Machine-hours...............................	61,000	20,000
Direct labor-hours..........................	28,000	66,000
Direct materials cost......................	$156,000	$284,000
Manufacturing overhead cost........	$385,000	$705,000

Required: Show all necessary calculations.

1. Compute the predetermined overhead rates for the Grinding Department and the Finishing Department.

2. Compute the total overhead cost applied to Job 424.\

3. Calculate the total cost of Job 424.

4. Compute the amount of underapplied or overapplied overhead in each department at the end of the current year.