Question 34 Nicole Limited is a company that produces machinery to customer orders , using a normal job-order cost system . It applies manufacturing overhead to production using a predetermined rate . This overhead rate is set at the beginning of each fiscal year by forecasting the year's overhead and relating it to direct labour costs . The budget for 2015 was as follows :" Direct labour $ 1, 800, 000 Manufacturing overhead $ 720.000 AS at the end of the year , two jobs were incomplete . These were 176BE , with total direct labour ch larges of $ 1 14, 500 , and 1 8190, with total direct labour charges of $390, 900 . On these jobs , machine hours were 287 hours for 17 6BE and $ 4 7 hours for 18190 . Direct materials issued for 17 EBB amounted to 5229, 000 , and for 1Big[ they' amounted to $ 1 20, 000 . Total charges to the Manufacturing Overhead Control account for the year were $ 897, 500 , and direct labour charges made to all jobs amounted to $ 1, 579, 800, representing 247, 600 direct labour hours . There were no beginning inventories . In addition to the ending work in process just described , the ending finished goods inventory account showed a balance of $ 719, 300 . Sales for the year amounted to $ 5, 208, 300; cost of goods sold totalled $3, 931, 200; and sales , general , and administrative expenses were $ 1, 655, 900