Question 1 (23 marks) Andrew Company is a manufacturing firm that uses job-order costing. The company applies overhead to jobs using a predetermined overhead rate based on direct labour hours. At the beginning of 2019, the company estimated that it would work 80,000 direct labour hours and would incur $1,800,000 in manufacturing overhead cost. The following projects were recorded for January 2019:

Andrew Company is a manufacturing firm that uses job-order costing. The company applies overhead to jobs using a predetermined overhead rate based on direct labour hours. At the beginning of 2019, the company estimated that it would work 80,000 direct labour hours and would incur $1,800,000 in manufacturing overhead cost. The following projects were recorded for January 2019: Director labour hours Machine hours Direct materials costs Direct labour costs Project Apple 2,000 1,000 $1,080,000 $1,200,000 Project Banana 3,000 1,200 $1,500,000 $1,800,000 Project Carrot 5,000 1,600 $1,800,000 $1,500,000 There was no work in process at the beginning of January 2019. Actual manufacturing overhead costs were $250,000 for January 2019. Project Apple and Project Carrot were completed successfully in January 2019, while Project Banana was completed on 18 February 2019. D od. COMPILL OIL TUI CUIULUI Required: (a) Compute the company's predetermined overhead rate for 2019. (2 marks) (b) Compute the amount of manufacturing overhead cost that would have been applied to each project during January 2019. (6 marks) (c) Determine the amount of under-/over-applied manufacturing overhead cost for January 2019. (3 marks) (d) Allocate the under-/ over-applied manufacturing overhead cost to the three projects, based on the balances on the manufacturing overhead cost applied to those projects. (3 marks) (e) Determine the balance in the Work in Process account at the end of January 2019. (3 marks) (f) If the contract price of Project Carrot is $4,281,250, calculate the profit margin percentage and markup percentage of the project. (3 marks) (g) Justify why an allocation base is used to assign manufacturing overhead cost to individual jobs