Question 3: Cabinets4U makes and installs custom cabinets for home renovations. The company applies overhead on the basis of direct labour hours. The company estimates its annual overhead to be S125,000 and it expects employees to work 10,000 hours. During the year, employees actually worked 11,000 hours and the actual amount spent on overhead was $130,000 Required: Compute the predetermined overhead rate. ) How much overhead would be applied to jobs during the year? c. By how much was overhead overapplied or underapplied for the year? Question 4: Intercity Roofing manufactures and installs custom shingles for use on damaged roofs of residential houses and apartments. The company uses a specialized manufacturing process to ensure the replacement shingles are an exact match with the existing roof. The company uses a job order costing system to apply manufacturing overhead on the basis of direct labour cost, The company estimates that during the next year, it will incur $70,000 in overhead costs and will pay $140,000 in direct labour costs. During the year, the following transactions occurred: .) Purchased $180,000 of direct materials on account. ) Purchased 55,000 of supplies on account. (The supplies consisted of glue and cleaning supplies.) c) Requisitioned 170,000 of direct materials and 4,500 of supplies for use in production d) Incurred employee costs: i Direct labour S150,000 i. Indirect labour 40,000 1. Administrative salaries 190,000 Sales salaries Sales commissions 90,000 c) Advertised on local television: 55.000 Rent: $12,000. 40% of the space related to sales offices, 60% was a shop used in production of roofing materials sDepreciation: $25,000. 70% relates to roofing equipment, 30% relates to office equipment h) Insurance expired: $15,000. 90% relates to the factory, the remainder relates to insurance on the office equipment. Manufacturing overhead costs were applied to production. Goods costing $375,000 were completed. 2) The company had sales on account of $800,000. According to cost data, the jobs cost $350,000 Required: For items A through Kabove, record journal entries. Unless otherwise noted, assume all transactions were on account. b) Was overhead overapplied or underapplied for the period? By how much? c) Record a journal entry to close overhead to cost of goods sold. Based on the information above, prepare an income statement for the company - assume a 20% tax rate. 30.000