Pedantic Company uses a job order cost system and applies overhead to production on the basis of direct labor hours. On January 1, 20XX, Job No. 25 was the only job in process. The costs incurred prior to January 1 on job No. 25 were $24,000. Job No. 23 had been completed at a cost of $42,000 and was part of finished goods inventory on January 1. There was a $5,000 balance in the Raw Materials Inventory account. During the month of January, the company began production on Jobs 26 and 27, and completed Jobs 25 and 26. Jobs 23 and 25 were sold on account during the month for $65,000 and $72,000, respectively. The following additional events occurred during the month. 1. Purchased additional raw materials of $60,000 on account. 2. Incurred factory labor costs of $33,500. Of this amount, $7,500 related to employer payroll taxes. 3. Incurred manufacturing overhead costs as follows: indirect materials $12,000; indirect labor $9,500; and various other manufacturing overhead costs on account $28,000. 4. Assigned direct materials and direct labor to jobs as follows. Job No. Direct Materials Direct Labor 25 $ 3,500 $ 3,000 26 14,000 12,000 27 6,800 8,000 5. The company uses direct labor hours as the activity base to assign overhead. Direct labor hours w ED (a) Calculate the predetermined overhead rate for the year 20XX, assuming Pedantic Company estimates total manufacturing overhead costs of $390,000, direct labor costs of $300,000, and direct labor hours of 26,000 for the year. (2 pts) I (b) Create job cost sheets for Jobs 25, 26, and 27. Enter the January 1 balances on the job cost sheet for Job No. 25. What are total job costs of Job No.25, Job No. 26, and Job No. 27? (3 pts) Job 25 Job 26 Job 27 Beg. Bal DM DL Total (c) What is the balance in the Work In Process Inventory account at January 31? What does this balance consist of? (2 pts) MacBook Air I (d) The beginning balance in the Manufacturing Overhead account is zero. What is the ending balance in Manufacturing Overhead? Manufacturing Overhead over or under-applied at January 31? (3 pts) Path:p MacBook Air 27 6,800 8,000 5. The company uses direct labor hours as the activity base to assign overhead. Direct labor hours incurred on each job were as follows: Job No. 25, 200; Job No. 26, 800; and Job No. 27, 600. Instructions Using the information above, answer the questions below. Show your work for partial credit. Paragraph BER D# (a) Calculate the predetermined overhead rate for the year 20XX, assuming Pedantic Company estimates .............. . MacBook Air 56 20 F3 FA 55 OL