Question 2 - 20 marks Work in Process Inventory for Jamson Inc. at the beginning of period is as follows: Job # Direct Direct Overhead Total Materials Labor $120 $41,500 $15,000 $25,500 $82,000 costs The company uses Direct Labor Hours to allocate overhead and the budgeted costs for the year are as follows: Budgeted Overhead Variable Indirect Materials $55,000 Indirect Labor $43,000 Employees Benefits $32,000 Fixed Supervision $13,000 Depreciation $20,000 Total $163,000 Budgeted Direct Labor Dollars $100,000 Rate per Direct Labor Dollar 163% The company's actual costs incurred during the year are as follows: Incurred by Jobs Job # Materials Labor Other Total $120 $4,000 $10,000 $ - $14,000 S121 $25,000 $20,000 $45,000 S122 $10,000 $35,000 $45,000 S123 $5,000 $15,000 $20,000 Total $44,000 $80,000 $ - $124,000 Overhead Indirect Materials $55,000 $55,000 Indirect Labor $40,000 $40,000 Employee Benefits $23,000 $23,000 Depreciation $20,000 $20,000 Supervision $15,000 $15,000 Total $55,000 $55,000 $43,000 $153,000 Page 4 of 9Required: 1. What was the actual overhead for the year? 2. Did Jameson Inc. overapplied or underapplied overhead for the year? And what will be the adjustment to Cost of Goods Sold? 3. Job S120 was the only job completed and sold in the year. What amount was included in the cost of goods sold for this job? 4. What was the amount of Work-in-Process inventory at the end of the year? 5. Explain why this company calculates a Predetermined Overhead Rate (POHR) and how it uses the rate throughout the process. Reminder: CLEARLY LABEL/NUMBER YOUR ANSWER IN THE BOOKLET PROVIDED. Do not write on this paper (it will not be marked)