Stellar Sound, Inc. which uses a job-order costing system, had two jobs in process at the start of 20x1: job no. 64 ($84,100) and job no. 65 ($53,500). 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:

Job No.	Direct Material			Direct Labor			Machine Hours
64	$	21,000		$	35,000			1,200
65					22,000			700
66		44,000			65,000			2,000
67		15,000			8,800			500

c. Manufacturing overhead during the first quarter included charges for depreciation ($33,900), indirect labor ($60,200), indirect materials used ($5,100), and other factory costs ($139,600).

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.

1. Determine the companys predetermined overhead application rate (per machine hour)

2. Determine the cost of jobs still in production as of March 31. (Round your answer to 2 decimal places.)

3. Did the finished-goods inventory increase or decrease during the first quarter? By how much? (Do not round intermediate calculations.)

4. Was manufacturing overhead under- or overapplied for the first quarter of the year? By how much? (Do not round intermediate calculations.)