Part II: Problems Problem1 Brentwood Associates uses a job-order costing system and applies overhead on the basis of direct labor hours. At the beginning of the year, management estimated that 26,000 direct labor hours would be worked and $1,300,000 of manufacturing overhead costs would be incurred During the year, the company actually worked 24,000 direct labor hours and incurred the following manufacturing costs: Direct materials used in productiorn Direct labor Indirect labor Indirect materials Insurance Utilities Repairs and Maintentance Depreciation $1,240,000 1,800,000 280,000 220,000 150,000 190,000 180,000 320,000 Required: 1. Calculate the predetermined overhead application rate for the year 2. Determine the amount of manufacturing overhead applied to work in process during the year. 3. Determine the amount of underapplied or overapplied overhead for the year