Hohoho Inc. uses a job order costing system.The estimated manufacturing overhead for the year is $3,000,000.The company has decided to allocate the manufacturing overhead to products on the basis of direct labour cost.The estimated direct labour costs for the year are $4,000,000.

K. What is the pre-determined manufacturing overhead rate that will be used to apply manufacturing overhead to products?

Job # 123 has accumulated $12,000 of direct materials and $22,000 of direct labour costs.The rate per direct labour hour is $25.

L. How much manufacturing overhead will be applied to Job #123?.

M. What is the total manufacturing cost of Job # 123 ?

Job # 124 has accumulated $18,000 of direct materials and $60,000 of direct labour costs.The rate per direct labour hour is $60.

N. How much manufacturing overhead will be applied to Job #124?

O. What is the total manufacturing cost of Job # 124 ?

Job # 125 has accumulated $12,000 of direct materials and $25,000 of direct labour costs.The rate per direct labour hour is $25.

P. How much manufacturing overhead will be applied to Job #125?.

Q. What is the total manufacturing cost of Job # 125 ?

At the end of the year over 40,000 different jobs were produced.Actual manufacturing overhead costs amounted to $3,200,000 instead of the $3,000,000 estimated at the beginning of the year.The actual direct labour costs amounted to $ 3,800,000.

R. How much manufacturing overhead was applied to all of the 40,000 + jobs?

S. Was the manufacturing overhead over or under applied?

T. By how much was the manufacturing overhead over or under applied?