Han Wu Manufacturing uses a job order cost system and applies overhead to production on the basisof direct labour hours. On January 1, 2023, Job no, 50 was the only job in process. The costs incurred prior to January on this job were:

Direct materials $10000

Direct labour $6000

Manufacturing Overhead $10500

As at January 1, Job no. 49 had been completed at a cost of $45000 and was part of the finished goods inventory. There was a balance of $5000 in Raw Materials inventory account.

During the month of January, production began on jobs 51 and 52, and completed jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $67000 and $74000 respectively.

The following additional events occurred during the month.

1. Purchased additional raw materials of $45000 on account.

2. Incurred factory labour costs of $31500. Of this amount $6500 related to employer payroll taxes. 3. Incurred manufacturing overhead costs of indirect materials $10000, indirect labour $7500, Depreciation expense $1250, and various other manufacturing overhead costs on account $1500

4. Assigned direct materials and diregt labour to jobs as follows:

Job No	Direct Materials	Direct Labour Cost	Direct Labour Hours
50	$5000	$3000	200
51	$20000	$12000	800
52	$15000	$9000	600

5. The company uses direct labour hours as the activity base to assign overhead. Direct labour hours incurred as above.

Required:

a. Calculate the predetermined overhead rate for 2023, assuming the estimated total manufacturing overhead costs were $500000, direct labour costs were $300000 and direct labour hours were 20,000 for the year.

b. Open job cost sheets for jobs 50, 51 and 52. Enter the January 1 balances on the Job no. 50

C. Update the job cost sheets for materials labour or overhead allocated, and total any jobs completed during the month.

d. What is the balance of finished goods inventory at the end of the month.

e. What is the amount of over or under-applied overhead for the month.