Required:1.Determine the company's predetermined overhead rate.2.Prepare job cost sheets for the first quarter to record all jobs from 64 to 67, with the application of manufacturing overhead to production.3.With the completion of job numbers 64 and 65, and sale of job number 65, determine:a. The cost of the jobs still in production as of March 31.b. The total cost of jobs soldc. The sale price of Job 65How much was Manufacturing Overhead over or under-applied?Why did this occur?

Cool Rhythms Ltd, which uses a job costing system, had two jobs in process at the start of the year: job number 64 ($88 000) and job number 65 ($55 500). The following information is available: (a) The company applies manufacturing overhead on the basis of machine hours. Budgeted overhead and machine activity for the year were anticipated to be $850 000 and 17 000 hours, respectively. (b) The company worked on four jobs during the first quarter (i.e. from 1 January to 31 March). Direct materials used, direct labour incurred and machine hours consumed were as shown in the following table. Job numbers Direct material Direct labour Machine hours 64 $22 000 $35 000 1200 65 ~ 23 000 700 66 45 000 65 000 2000 67 16 000 10 800 500 (c) Manufacturing overhead during the first quarter included depreciation ($35 000), indirect labour ($61 000), indirect materials used ($50 000) and other factory costs ($140 000). (d) Cool Rhythms completed job number 64 and job number 65 during the first quarter. Job number 65 was sold on credit, producing a profit of $34 700 for the firm