Question 2 (13 points) During January, the first month of operations, Northern Corporation worked on one job, W100. Northern Corporation applies overhead to jobs using a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated that it would use 37,000 machine hours and that it would incur $555,000 in manufacturing overhead cost. Summary data concerning this job is as follows: a. Purchased materials, $49,000 on account. b. Direct materials used were $40,000. Indirect materials used were $7,000. c. Indirect labour was $3,000. Direct labour was $120,000. d. Manufacturing overhead incurred on credit (not including indirect materials and indirect labour) totaled $31,500. e. Advertising costs were incurred, $7,200. f. Manufacturing overhead was applied to the job. There were 3,100 machine hours used on Job W100. g. Job W100 was completed. Required: 1. Prepare journal entries on the general journal provided to record the above events. (Identify each journal entry by letter in the date column) (10 marks) 2. Is the overhead over applied or under applied and by how much? A separate table below the general journal has been given for your response. (2 marks) 3. Provide one advantage of using a predetermined manufacturing overhead rate. (1 mark)