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 R240,000 and machine hours would be 8,000 The following information pertains to December of the current year. Job 12 Job 10 R16,000 Job 11 R26,000 Total R80,000 R38,000 Work-in-process, Dec 1 December production activity R 4,000 R 2,400 Materials requisitioned Direct labor cost Machine hours R 4,800 R 3,600 700 R 7,200 R 4,000 R16,000 R10,000 2,000 400 900 180 120 200 500 Labor hours Actual manufacturing overhead cost incurred in December was R61,000 Required 1 Compute the predetermined overhead application rate 2 Determine the total cost associated with each job 3. How much was overhead over/underapplied