The Aral Manufacturing Company operates a job-order costing system and applies overhead cost on the basis of direct labour hours. In computing an overhead rate for the year, the - company's estimates were as follows: manufacturing overhead cost, $330,000, direct labour 5 cost, $480,000 and direct labour hours, 24,000 hours. The following transactions occurred 7 during their fiscal year ended October 31, 2021: 8 9 a) Raw materials were purchased on account: $452,500 10 11 b) of the raw materials that were used during the year, $42,000 were indirect raw materials. 12 13 c) Selling and administrative salaries were $150,000. 14 15 d) Total factory payroll was $540,000, a portion of which was indirect. A total of 23,600 direct 16 labour hours were worked during the year. There was no change to the average direct labour 17 18 e) Marketing cost was incurred: $70,000. 19 20 f) Depreciation charges for the year totaled $180,000 (75% related to fabrication and shop 21 assets and 25% related to selling and administrative assets). action 2 Question 3 g) Utilities incurred during the year in the factory was $47,500; selling and administrative utilities - h) Opening inventories and the unadjusted closing inventories were: Opening Closing Raw Materials: 20,000 25,000 3 Work-In-Process: 25,500 ? 3 Finished Goods: 45,000 ? 0 51 ) The ending work-in-process inventory on October 31, 2021 had incurred $9,000 of direct raw 32 materials and 400 direct labour hours. 33 34 ) Goods that cost $1,205,000 to manufacture according to their job cost sheets were 35 36 k) Sales for the year totalled $2,000,000. The unadjusted cost of goods sold was $1,200,000. 37 38 REQUIRED: 39 1. Calculate the manufacturing overhead application rate and the manufacturing overhead applied for the year. (2 mark 40