QUESTION 5 (20 marks) Paten Company uses a unit-level predetermined overhead rate to apply overhead. Overhead is applied on the basis of direct labour hours in department 1 and on the basis of machine hours in department 2. At the beginning of 2020 , the following estimates are provided for the coming year: Actual results reported for all jobs during 2020 are as follows: The accounting records of the company show the following data for Job A: 1. Compute the predetermined overhead rate for each department. 2. Compute the applied overhead for all jobs during 2020. What is the underapplied or overapplied overhead for each department? for the firm? 3. Prepare the journal entry that disposes of the overhead variance for the firm, assuming it is not material in amount. 4. Compute the total cost of Job A. If there are 50 units in Job A, what is the unit cost? Paten Company uses a unit-level predetermined overhead rate to apply overhead. Overhead is applied on the basis of direct labour hours in department 1 and on the basis of machine hours in department 2 . At the beginning of 2020, the following estimates are provided for the coming year: Actual results reported for all jobs during 2020 are as follows: The accounting records of the company show the following data for Job A: 1. Compute the predetermined overhead rate for each department. 2. Compute the applied overhead for all jobs during 2020. What is the underapplied or overapplied overhead for each department? for the firm? 3. Prepare the journal entry that disposes of the overhead variance for the firm, assuming it is not material in amount. 4. Compute the total cost of Job A. If there are 50 units in Job A, what is the unit cost