QUESTION 3 The GO-Magic company uses job-order costing system. The following data relate to the first quarter of the company's fiscal year a. Materials requisitioned for production cost $550,000 ( direct materials and indirect materials are proportioned by 6:2). b. Utility costs incurred are $75,000 c. Raw Materials purchased on cash $450,000 d. Salaries Indirect Labour Direct Labour Selling Commission Admin Salaries $ 125,000 250,000 140,000 200,000 e. Marketing cost incurred is $120,000 f. Prepaid insurance expired during this period $170,000.( 75% belongs to the factory and the rest to the admin] g. Rental expense for the factory is $80,000 and rent for the shop is $25,000 h. Supplies cost incurred during the month is $12,000 (on account] i. Use the information below to find the Predetermined Rate using machine hours as the cost driver Budgeted Overhead Budgeted machine hours Actual machine hours Actual overhead $ 176,000 51,000 hours 60,000 hours 242,000 j. Journalize the applied cost used in section (i) k. Goods costing to produce =$3,400,000 were completed during the quarter 1. Cash Sales was $1,200,000. Cost to produce it was $800,000 m. Cash paid to supplier was $9,500 n. $25,000 Cash was paid for Bank Loans REQUIRED 1. Prepare Journal entries for the quarter 2. Is production cost underallpied or overapplied? [Marks 30 ]