Rock Star, Inc., which uses a job-costing system, began business on January 1, 20x3 and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 20x3:

Budgeted direct labor and manufacturing overhead were anticipated to be $200,000 and $250,000, respectively.

Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct material and direct labor: Job # Direct Materials Direct Labor 1 $145,000 $35,000 2 320,000 65,000 3 55,000 80,000

Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production.

Actual manufacturing overhead by year-end totaled $233,000. Rock Star adjusts all under- and overapplied overhead to cost of goods sold.

Required:

a) Compute the company's predetermined overhead application rate.

b) Compute Rock Star's ending work-in-process inventory.

c) Determine Rock Star's sales revenue.

d) Was manufacturing overhead under- or overapplied during 20x3? By how much?.