Ola Ltd, which uses a job costing system, had two jobs in process at the start of the year: Job L1 ($68,000) and Job L2 ($30 000). The following information is available: i) The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $1,000,000 and 25,000 hours, respectively. ii) The company worked on three jobs during the first quarter (i.e. from 1 January to 31 March). Direct materials used, direct labour incurred and machine hours consumed were as shown in the following table: Job numbers Direct material Direct labour Machine hours L1 $15,000 $30,000 900 L2 - 33,000 1,600 L3 45,000 65,000 2,000 iii) Manufacturing overhead incurred during the first quarter was $215,000. iv) Ola Ltd completed Job L1 and Job L2 during the first quarter. Job L2 was sold on credit, producing a profit of $30,000 for the company. Required: a) Calculate the companys predetermined overhead rate. (2 marks) b) Calculate manufacturing overhead applied to production for the first quar