T' I ft 0:50:19 Auto Renovators1 is a leading classic car restoration company in Australia. The company has hm. for renovating thousands of classic cars in Australia according to customers' orders. In February, the company has worked on ve jobs, numbered 301 to 305. Direct materials used, direct labour incurred in February were as shown in the following table. Order Direct Direct number material ($) labour ($) 301 970 1400 302 650 1200 303 800 800 304 950 1700 305 1 10 400 Manufacturing overheads during February included indirect material ($ 750), indirect labour ($ 2200), rent ($ 1800). depreciation (S 1200), insurance (5 100). utilities ($ 500), and other manufacturing costs (5 100). At the beginning of the month, management anticipated that overhead cost would be S 6400 and total direct labour would amount to $ 5000. Overhead is allocated on the basis of direct labour dollars. jobs 301 to 304 were nished during the month; Job 305 is still in process.]obs 301 to 303 were picked up and paid by customers for S 5800, S 4900, S 3200. Job 304 is still waiting on the slot for customer's pick-up. Required 1. Determine the company's predetermined overhead rate. 2. Prepare the journal entries to reect the following: the incurrence of materials, labour, and actual overhead costs; the allocation of overhead; and the transfer of job costs to nished goods inventory and cost of goods sold (Note: Use summary entries where appropriate by combining individual job data). 3. In your own words, describe the two different approaches to closing overapplied or underapplied overhead at the end of the month. How do you choose an appropriate method? Calculate the amount of overapplied or underapplied overhead to be closed and prepare an appropriatejournal entry