In Victoria, Keilor Auto Body2 has been well-known for renovating classic and sports cars. In April, worked on five job orders, numbered 401 to 405. Direct materials used, direct labour incurred in Apr following table. Order number Direct material (S) Direct labour (S) 401 900 1300 402 750 1150 403 800 950 404 750 1700 405 190 400 Manufacturing overheads during April included the following cost items: indirect material indirect labour rent depreciation insurance utilities other manufacturing costs 900 2,100 1,200 1,500 250 800 450 At the beginning of the month, management anticipated that overhead cost would be $ 6400 and total amount to $5000. Overhead is allocated on the basis of direct labour dollars. Jobs 401 to 404 were finished during the month; Job 405 is still in process. Jobs 401 to 403 were picl customers for $ 5800, S 4900, $ 3200. Job 404 is still waiting on the slot for customer's pick-up. Required 1. 2. Determine the company's predetermined overhead rate. Prepare the journal entries to reflect the following: the incurrence of materials, labour, a costs; the allocation of overhead; and the transfer of job costs to finished goods inventory and (Note: Use summary entries where appropriate by combining individual job data). 3. In your own words, describe the two different approaches to closing overapplied or unde the end of the month. How do you choose an appropriate method? Calculate the amount of ove underapplied overhead to be closed and prepare an appropriate journal entry.