Problem 17.3A (Static) Job Order Costing: A Comprehensive Problem (LO17-1, LO17-2, LO17-3, LO17-4, LO17-5) Georgia Woods, Inc., manufactures furniture to customers' specifications and uses job order costing. A predetermined overhead rate is used in applying manufacturing overhead to individual jobs. In Department One, overhead is applied on the basis of machine-hours, and in Department Two, on the basis of direct labor hours. At the beginning of the current year, management made the following budget estimates to assist in determining the overhead application rate. Direct labor cost Direct labor hours Manufacturing overhead Machine-hours Department One Department Two 300,000 225,000 20,000 15,000 420,000 337,500 12,000 7,500 Production of a batch of custom furniture ordered by City Furniture (job no. 58) was started early in the year and completed three weeks later on January 29. The records for this job show the following cost information. Department Department One Two Job order: City Furniture (job no. 58) Direct materials cost $ 10.100 $ 7,600 Direct labor cost 16,500 $11,100 Direct labor hours 1.100 740 Machine-hours 750 500 Selected additional information for January is as follows. Direct labor hours-month of January Machine-hours-month of January Manufacturing overhead incurred in January Department One 1.600 1,100 39,010 Department Two 1.200 600 26,546 Required: a. Compute the predetermined overhead rate for each department. b. What is the total cost of the furniture produced for City Furniture? c. Prepare the entries required to record the sale (on account) of the furniture to City Furniture. The sales price of the order was $147,000. d. Determine the over- or underapplied overhead for each. department at the end of January