(LC 7-46. Analysis of Overhead Using a Predetermined Rate Script Company uses a job costing accounting system for its production costs. A predeter- An estimate of overhead costs at different volumes was prepared for the current year as mined overhead rate based cons direct labor-hours is used to apply overhead to individual jobs. follows: Direct labor-hours..... Variable overhead costs. Fixed overhead costs... Total overhead 18,000 $ 864,000 1,200,000 $2,064,000 24,000 $1,152,000 1,200,000 $2,352,000 30,000 $1,440,000 1,200,000 $2,640,000 272 Pest Management The expected to here the following mati fornite holland Tore complete 100.000 219.120 545.000 1.500,000 190.000 on October Rende Win proces (101) doodle Purchase of raw and up Raw materials Supplies Me and supplies toned for production Job 1011 Job 1015 Job 1017 Supplies 574,400 562.800 113.290 184, OBO 51.534,560 7440 MH 7320 MH 4.440 MH 8.400 DLH 9,660 DLH 2.220 DLH Machine hours (MH Job 1011 Job 1015 A 1017 Direct labop hours (DLHO Job 1011 Job 1015 Job 1017 Labor costs Direct labor wages (all hours a $48) indirect labor wagos (12.000 hours) Supervisory salaries Building occupancy cost heatlight, depreciation, etc.) Factory facilities Sales and administrative offices Factory equipment costs Power Repairs and maintenance Other 5685,440 151.200 307,200 88,560 34,080 52,320 19,680 23,760 $ 95,760 Required Answer the following questions Compute the predetermined overhead rate (combined fixed and variable) to be used to apply overhead to individual jobs during the year (Note: Regardless of your answer to requirement (d). assume that the predetermined overhead rate is $100 per direct labor-hour. Use this amount in answering requirements [b] through lo bi Compute the total cost of Job 1011 when it is finished. How much of factory overhead cost was applied to Job 1017 during October? d. What total amount of overhead was applied to jobs during October? e Compute actual factory overhead incurred during October At the end of the year , Script Company had the following account balances: c Underapplied Overhead. Cost of Goods Sold Work-in-Process Inventory Finished Goods Inventory Balance $ 7.200,000 67,200,000 9,600,000 19,200,000 --- How would you recommend treating the underapplied overhead? Show the effect on the account balances in the following table: Underapplied Overhead. Cost of Goods Sold. Work-in-Process Inventory Finished Goods Inventory