Problem (60 points) Erano Company tits minute according te dient's specificates the company has twe departments Design and manufacturing one components and healing department. The company uses a job cesting system with the direct.com Materials and Later and two indirect cool maling penting verhead who is the allocation before and machine hours for Design and manufacturing prent The 2020 budget for the Company as follow membuat Costs Components Design and Manufacturing $180,000 SA DO Overhead $200,000 $500.000 Labor Hours 10.000 20.000 Machine her 5.000 On October 2020, Frane Company ten contract Doblo build minhouse. The company bills to customers on a plus back to ots. The company order to standard During October, only the contract for lobt whether completed According to acting cards the following coordinador Asem Costs Components Materials Labor Labor Hours Machine-hours Overhead Design and Manufacturing $5,000 $1,360 BS 40 ? 53,000 $3,400 170 85 Required: 1. Compute the budgeted here for each department 2 Compute the total overhead allocated to 3.1 3. Compute the total costs of ob 3. (10 point 4 Estimated the price that inane Company Wiled to customer for 15 point Fatimated the propofitons on pinte 6 Assume that at the end of 2000, the actual head 220.000 dinge and Manufacturing Department and 525.000 in Anyting Department. The actual machine hon were and wal diretaling were $420,000. Compute the war under located whead weatment 1. Any underapplied or swapplied wet wtywned Cost of Good Sold Record in General Journal form the adjusting to charge the verwunderapplied Overhead for each department & Suppose that an extraordinary change in international markets arrecedent Increase of son on indirect materiah findeest materials represent on everhead costs What happened to the gross profitabideer metafect? Problem (60 points) Enano Company builds mini-house accordingly to client's specifications. The company has two departments: Design and manufacturing house components and the Assembly-installing department. The company uses a job-costing system with two direct-costs (Materials and Labor) and two indirect-cost pool (assembly-installing support and design-manufacturing overhead) when labor-costs is the allocation base for Assembly-installing support costs, and machine-hours for Design and manufacturing department. The 2020 budget for the Company is as follows: Estimated mini-house to builds (120 units) Costs Components Design and Manufacturing Assembly-Installing Labor $160,000 $400,000 Overhead $200,000 $500,000 Labor Hours 10,000 20,000 Machine-hours 5,000 10,000 On October 2020, Enano Company sign ten contracts (Job-01, Job-02, Job-03, ...) to builds mini-house. The company bills to customers on a cost-plus basis, with profit equal to 30% of costs. The company uses a job order system based on standard cost (normal cost) During October, only the contract for Job-03 was finished, the others Jobs are in process (90% completed) Accordingly, to accounting records the following costs information was gathered for Job-03: Costs Components Materials Labor Labor Hours Machine-hours Overhead Design and Manufacturing $5,000 $1,360 85 40 ? Assembly-Installing $3,000 $3,400 170 85 Required: 1. Compute the budgeted overhead rate for each department. (10 points) 2. Compute the total overhead allocated to Job-03. (10 points) 3. Compute the total costs of Job-03. (10 points) 4. Estimated the price that Enano Company billed to customer for Job-03. (5 points) 5. Estimated the gross profit on Job-03. (5 points) 6. Assume that at the end of 2020, the actual overhead costs were $220,000 in Design and Manufacturing Department and $525,000 in Assembly-Installing Department. The actual machine-hours were 5,250 and actual direct labor costs in assembly-installing were $420,000. Compute the over or under-allocated overhead for each department. (10 points) 7. Any underapplied or overapplied overhead at year-end is assigned to cost of Goods Sold. Record in General Journal Form the adjusting to charge the over or underapplied overhead for each department. (5 points) 8. Suppose, that an extraordinary change in international markets cause an unprecedent increase of 50% on indirect materials (indirect materials represent 60% of overhead costs) What happened to the gross profit on Job-03? Increase, decrease, or not effect? (5 points)