Reed Incorporated uses a job-order costing system and a predetermined overhead rate based on machine hours. At the beginning of the year, the company estimated manufacturing overhead for the year would be $240,000 and estimated machine hours would be 10,000. The following information pertains to December of the current year: Job 10 Job 11 Job 12 Total Work-in-process, Dec. 1 $16.000 $26.000 $38.000 $80.000 December production activity: Materials requisitioned $ 4,000 $ 4,800 $ 7,200 $16,000 Direct labor cost $ 2,400 $ 3,600 $ 4,000 $10.000 Machine hours 400 hrs. 700 hrs. 900 hrs. 2000 Labor hours 120 hrs. 180 hrs. 200 hrs. 500 Actual manufacturing overhead cost incurred in December was $61,000. Required: A Compute the predetermined overhead application rate. Show all your work. Overhead costs/machine hours => $240,000/ 10,000 = $24 B. Determine the total cost associated with Job 12. Show all your work. Job 12 Machine Hours 900 Work-in Process $38,000 Direct Material $7.200 Direct Labor $4,000 Manufacture Overhead (900 * $24) $21,600 Total Cost $70,800