Short Answer R2D2 Test Systems manufactures automated testing equipment. The company uses a job- order costing system and applies overhead on the basis of machine hours (MH). At the beginning of the year, estimated manufacturing overhead was $1,960,000, and the estimated machine hours were 98,000. Data regarding the current jobs worked on during January at +R2D2 are presented below: Job Number Beginning Balance Direct Materials (DM) Direct Labour (DL) Machine Hours (MH) XJ-107 $118,600 $4,000 $8,400 ST-211 121,450 2,500 12,160 150 300 XD-108 21,800 86,400 36,650 3,100 SL-205 34,350 71,800 32,175 2,700 RX-115 0 18,990 21,845 1,400 By the end of the first month (January), all jobs but RX-115 were completed, and all completed jobs had been delivered to customers except for SL-205. Required: 7. What is the indirect cost allocation rate? What was the total manufacturing overhead applied in January? 9. What was the COGS for January? 10. What was the ending Finished Goods balance? 8