Question 2 (10 Marks) Montana Technology, Inc. has a job-order costing system. The company uses pre- determined overhead rates in applying manufacturing overhead cost to individual jobs The pre-determined overhead rate in Department A is based on machine hours, and the ate in Department B is based on direct materials cost. At the beginning of the most ecent year, the company's management made the following estimates for the year: Department A B Machine-hours 70.000 19,000 Direct labour-hours 30,000 60,000 Direct materials cost $195,000 $282,000 Direct labour cost $260,000 $520,000 Manufacturing overhead cost $420,000 $705,000 Job 243 entered into production on April 1 and was completed on May 12. The company's cost records show the following information about the job: Department A B Machine-hours 250 60 Direct labour-hours 70 120 Direct materials cost $840 $1,100 Direct labour cost $610 $880 At the end of the year, the records of Montana showed the following actual cost and operating data for all jobs worked on during the year: Department A B Machine-hours 61,000 20,000 Direct labour-hours 28,000 66,000 Direct materials cost $156,000 $284,000 Manufacturing overhead cost $385,000 $705,000 Required: a. Compute the pre-determined overhead rates for Department A and Department B (4 marks) Compute the total overhead cost applied to Job 243 (2 marks) C. Computer the amount of under-applied or over-applied overhead in each department at the end of the current year (4 marks)