ion 4 (20 marks) Filme Allowed: 3 Hours Number of Pages: predetermined overhead rate is based on estimated direct labor costs of $240.000 and estimated factory Universal Insight Company takes special orders to manufacture luxury flying cars for customers. The overhead of $480,000. It uses a job order cost system and applies overhead to its production based on direct labor costs. During the month of January, the company started in production of Jobs 701 and 702 and Job 701 was completed at the month end. The following additional events occurred in January 1. Purchased raw materials of $70,000 on account 2. Incurred direct labor costs of $32,000, wages payable in February 3. The total manufacturing overhead costs were as follows: indirect materials $12,000 used other factory overhead costs of $54,000 paid by cash During January, the two jobs had used direct materials and direct labor as follows: Job No. Direct Materials Direct Labor 701 26,000 17.000 702 22.000 15.000 12000/ used Required: i. Calculate the predetermined overhead rate. (2 marks) ii. Show the calculations of the factory overhead applied for Job 701 & 702. (2 marks) fii. Determine whether the factory overhead over-applied or under-applied with supporting calculations. (2 marks) iv. Complete the Job Sheet Summary in the following format: (4 marks) Job 701 Job 702 Direct Materials Direct Labors Factory Overhead applied Total Cost V. Prepare the journal entries to record the purchase of raw materials, the direct labor costs incurred a the manufacturing overhead costs incurred during the month of January (6 mar Identify Two characteristics of the job order cost system. (4 ma Page 7 of 8