In addition to manufacturing and selling its own products, the Final Company buys and sells some other trade. goods as well. The company uses a job-order costing system at its manufacturing plant. The company uses normal costing with two direct cost categories (direct materials and direct labor) and applies manufacturing overhead costs to the products using machine hours as the allocation base. At the beginning of 202I, it was estimated that the company would work for a total of 175,000 direct labor hours and 250,000 machine hours for the production. Manufacturing overhead costs are budgeted as $875,000 for 2021 . Required: 1. What is the predetermined overhead rate for the year 2021 ? 2. During 2021, production required a total of 157,000 direct labor hours and 190,000 machine hours, and the company incurred a total manufacturing overhead cost of $725,000 actually. Compute the under or over applied manufacturing overhead for the year. considered material. b. What will be the amount of i. Finished Goods Inventory to be reported on the Statement of Financial Position? ii. Cost of Goods Sold to be reported on the Profit or Loss Statement