Question 1 Cardinal Company uses a job-order costing system in which overhead is applied to jobs based on machine hours. The overhead rate for the first year was based on 50.000 estimated machine hours and 5600,000 of estimated total manufacturing overhead. There were 48,000 actual machine hours for the year. During the first year of operations, they had the following selected transactions a. Purchased materials for $365,000 on account. b. Direct tabour was $720,000, Indirect labour was $80.000 c. Rent costs were incurred and paid in cash: 5435,200 in the factory and 59.000 in the administrative office. Direct materials used were $295.000. Indirect materials used were 586.000. e Overhead was applied 1. All of the jobs were completed and transferred Required: 1. Prepare journal entries to record the above events (18 marks) (Identity each journal entry by tetter in the date column) 2 Calculate the balance in the manufacturing overhead account and label it as either underapplied or overappties (3 marks) 207