Overhead Application, Journal Entries, Job Cost At the beginning of the year, Dillon Company budgeted overhead of $$180,000$ as well as $15,000$ direct labour hours. During the year, Job K$456$ was completed with the following information: direct materials cost, $$2,340$; direct labour cost, $$3,600.$ The average wage for Dillon Company employees is $$10$ per hour.By the end of the year, $15,400$ direct labour hours had actually been worked, and Dillon Company incurred the following actual overhead costs for the year: Equipment lease $ $5,000$Depreciation on building $20,000$Indirect labour $100,000$Utilities $15,000$Other overhead $45,000$ Required: $1.$ Calculate the overhead rate for the year. $5$ Marks $2.$ Calculate the total cost of Job K$456.5$ Marks $3.$ Prepare the journal entries to record actual overhead and to apply overhead to production for the year. $10$ Marks $4.$ Is overhead over$-$applied or under$-$applied? By how much? $5$ Marks $5.$ Assuming that the normal cost of goods sold for the year is $$700,000,$ what is the adjusted cost of goods sold? $5$ Marks Question $2$ STEPS IN PREPARING A COST OF PRODUCTION REPORT Stilton Audio is a producer of speakers and amplifiers which are housed in plastic cabinets. Currently production of the plastic cabinets as well as final product assembly is completed in$-$house. For accounting purposes, Stilton Audio uses the weighted average method, where plastic cabinets speaker and amplifier components are added at the beginning of the assembly process. The following are cost and production data for the assembly process for April: Production:Units in process, April $1,60$ percent complete $60,000$Units completed and transferred out $150,000$Units in process, April $30,20$ percent complete $30,000$ Costs:WIP, April $1$:Plastic cabinets $ $1,200,000$Speaker and amplifier components $12,600,000$Conversion costs $5,400,000$ Costs added during April:Plastic cabinets $2,400,000$Speaker and amplifier components $25,200,000$Conversion costs $8,640,000$ Required: Prepare a cost flow analysis for the assembly department for April. $10$ Marks Calculate equivalent units of production for the assembly department for April. $10$ Marks Calculate unit cost for the assembly department for April. $10$ Marks Calculate the cost of units transferred out and the cost of EWIP inventory. $5$ Marks Prepare a cost reconciliation for the assembly department for April. $10$ Marks