Mitchel Manufacturing is a small manufacturer that uses machine-hours as its activity base for assigned overhead costs to jobs. The company estimated the following amounts for 2014 for the company and for Job 62:

Company

Job 62

Direct materials	$70,000	$5,500
Direct labor	$30,000	$2,800

Manufacturing overhead costs

$76,500

Machine hours

90,000

1,500

During 2014, the actual machine-hours totaled 80,000, and actual overhead costs were $70,000. Instructions (a) Compute the predetermined overhead rate. (b) Compute the total manufacturing costs for Job 62. (c) How much overhead is over or underapplied for the year for the company? State amount and whether it is over- or underapplied. (d) If Mitchel Manufacturing sells Job 62 for $15,000, compute the gross profit.