Jacob Welding, Inc. specializes in custom steel frames and uses job costing to account for its operations. The following information is available as of May 1 for the work-in-process inventory account.

Job#	Direct Materials	Direct Labor	ManufacturingOverhead	Total Costs
304	$3,000	$1,800	$2,520	$ 7,320
306	4,000	2,100	2,940	9,040
Total costs	$7,000	$3,900	$5,460	$16,360

Jacob Welding pays an hourly rate of $15 for direct labor. The manufacturing overhead costs are applied to jobs based on the direct labor hours used. During the month of May, Jacob Welding spends $5,800 to purchase materials and $4,650 for manufacturing overhead. The operations in May are summarized below.

Job#	Material Requisition Summary	Time Card Summary (Hours)
304	$1,100	40
306	900	30
307	2,800	110
308	750	25
Total	$5,550	205

Jobs 304, 306, and 307 are completed in May but only Jobs 304 and 307 are delivered to customers.

Required:

1. Calculate the predetermined overhead rate used.
2. Prepare the necessary journal entries for May (assuming any over- or underapplied manufacturing overhead is written off to Cost of Goods Sold account monthly).