Pando, Inc. uses a job-order costing system. The company had two jobs in process at the start of the year: job no. 501 ($165,000) and job no. 502 ($100,000) and worked on four jobs during the first quarter. At the end of the first quarter, job no. 501 and job no. 502 was completed. Direct materials used, direct labor incurred, and machine hours consumed were as follows:

Job No	Direct Material	Direct labour	Machine hours
501	$42,000	$70,000	2,400
502	0	44,000	1,400
503	88,000	130,600	4,000
504	30,000	17,600	1,000

Manufacturing overhead incurred during the first quarter included:

- Charges for depreciation	$ 70,000
- Indirect labor	130,000
- Indirect materials used	11,000
- Other factory costs	289,000

The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year was anticipated to be $1,780,000 and 32,000 hours, respectively.

Requirements:

1. Determine the companys predetermined overhead application rate.
2. Produce Schedule of cost of good manufactured for Job no 501 and Job no 503
3. Calculate manufacturing overhead under-applied or over-applied for the first quarter of the year