QUESTION # 2 The following information pertains to Glass Works Company for 2014. Budgeted direct-labour cost: --------------------------------75,000 hours at $16 per hour Actual direct-labour cost: ------------------------------------80,000 hours at $17.50 per hour. Budgeted Manufacturing Overhead: ---------------------$ 997,500 Actual Manufacturing Overhead: Depreciation ------------------------------------------------- $ 240,000 Property Taxes---------------------------------------------------12,000 Indirect Labour --------------------------------------------------82,000 Supervisory Salaries --------------------------------------------200,000 Utilities------------------------------------------------------------ 59,000 Insurance ----------------------------------------------------------30,000 Rental of Space-------------------------------------------------- 300,000 Indirect Material --------------------------------------------------- 79,000 Required a) Compute the firms predetermined overhead rate, which is based on direct-labour hours. (3 marks) b) Calculate the overapplied or underapplied overhead for 2014. (4 marks) c) Prepare a journal entry to close out the Manufacturing Overhead Account into Cost of Goods Sold. (3 marks)