Job Order Costing: Additional Practice Question #2 The West Chester Company (WCC) makes customized student workbooks on a course by course basis. The workbooks are designed to help students organize their notes, stay up to date and machine shop that is located right next to the Company's office building. The Company bookkeeper small has furnished you with the following selected estimated information for 20X9 Direct Labor hours $5.000 Machine hours 500 Wages of machine operators $ 3.000 Office rent 1,000 Office salaries $ 4,000 Machine shop rent $ 5,000 Utilities on machine shop $1.500 $ 9,000 Office utilities Insurance on office Insurance on machine shop $1,000 Lubricants for machines in the machine shop $ 600 $ 1.400 $ 2,000 Janitor salary in machine shop At the end of 20X9 the bookkeeper provided you with the following selected actual data: Actual Data Machine hours 1.200 Total manufacturing overhead $19,400 Wages of machine operators $5.500 Please answer the questions below. Be sure to show all calculations clearly!!! 1. Compute WCC's predetermined overhead rate (OHR) for the year. OHR = 2. Determine the amount of over or underapplied overhead for the year!!! Overhead Actual S Applied 3. Based on your answer in (2) above, what will be the effect on WWC's cost of goods sold and net income for the year? Be clear!!! COGS: Net Income: 4. What would WCC's predetermined overhead rate (OHR) be if the activity base was DL cost instead of machine hours? What would WCC's over/underapplied overhead be using DL cost? Show all computations!!! Under or Over Applied Overhead OHR = Actual overhead S Applied overhead S