Required: 1. Determine the company's predetermined overhead application rate. (Round your answer to 2 decimal places.) 4. Did the finished-goods inventory increase or decrease during the first quarter? By how much? (Do not round intermediate calculations.) 5. Was manufacturing overhead under- or overapplied for the first quarter of the year? By how much? (Do not round intermediate calculations.) 3. Determine the cost of jobs still in production as of March 31. Required information [The following information applies to the questions displayed below.] Stellar Sound, Inc., which uses a job-order costing system, had two jobs in process at the start of 201 : job no. 64($84,100) and job no. 65($53,400). The following information is available: a. The company applies manufacturing overhead on the basis of machine hours (based on practical capacity). Budgeted overhead and machine activity for the year were anticipated to be $792,000, and 16,000 hours, respectively. b. The company worked on four jobs during the first quarter. Direct materials used, direct labor incurred, and machine hours consumed were as follows: c. Manufacturing overhead during the first quarter included charges for depreciation ($33,500), indirect labor ($60,100), indirect materials used ($5,200), and other factory costs ($139,700). d. Stellar Sound completed job no. 64 and job no. 65. Job no. 65 was sold on account, producing a profit of $34,800 for the firm. 2. Prepare journal entries as of March 31 to record the following. (Note: Use summary entries where appropriate by combining individual job data.) (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations.) Record raw materials transferred to production. a. The issuance of direct material to production and the direct labor incurred. b. The manufacturing overhead incurred during the quarter. c. The application of manufacturing overhead to production. d. The completion of jobs no. 64 and no. 65. e. The sale of job no. 65 . 2 Record direct labor transferred to production. Assume the wages are not yet paid in cash. 3 Record manufacturing overhead incurred during the quarter. Assume the amounts are not yet paid in cash. 4 Record application of manufacturing overhead to production. 5 Record transfer of job cost from work in progress to finished goods inventory. 6 Record sales on account