The following data were taken from the records of Blossom Enterprises, a Canadian manufacturer that uses a normal job-order costing system: Work in Process, December 1 Job Number 70 75 80 Direct materials $1,820 $2,420 $1,520 Direct labour 1,210 2,420 610 Applied overhead 610 1,360 450 Total $3,640 $6,200 $2,580 During December, the company worked on jobs numbered 70 through 90 and incurred the following costs: Job Number 70 75 80 85 90 Total Direct materials $610 $910 $1,210 $1,360 $1,520 $5,610 Direct labour $760 $1,520 $3,030 $2,270 $6,060 $13,640 Direct labour hours 50 100 200 150 400 900 1. 2. Total overhead costs are applied to jobs on the basis of direct labour hours worked. At the beginning of the year, the company estimated that total overhead costs for the year would be $151,560, and the total labour hours worked would be 12,630. The balance in the Departmental Overhead Control account on December 1 was $161,610. Actual direct labour hours for the previous 11 months (January through November) were 11,360. 3. There were no jobs in finished goods on December 1. 4. Expenses for December were as follows (not yet recorded in the books of account): Direct materials purchased $7,580 Salaries Production clerk 1,520 Supervisor 2,220 Depreciation (plant and equipment) 2,510 Factory supplies 1,520 Sales staff salaries 9,290 Utilities (factory) 1,820 Administrative expenses 9,600 $36,060 $36,060 5. The company writes off all under- or over-applied overhead to Cost of Goods Sold at the end of the year. 6. Jobs 70, 80, 85, and 90 were completed during December. Only Job 90 remained in finished goods on December 31. 7. The company charges its customers 250% of total manufacturing cost. 8. Cost of goods sold to December 1 was $36,060. Using the information given, calculate the following amounts: 1. The predetermined overhead rate used to apply overhead to products $ 2. The cost of ending work in process inventory 3. The cost of goods manufactured in December SA S 4. The unadjusted gross margin for December eTextbook and Media per labour hour 14. The unadjusted gross margin for December eTextbook and Media List of Accounts Question Part Score Calculate the under- or over-applied overhead for the year. Overhead $ Under-applied Over-applied What effect would this amount have on net income? Net income will be by $ eTextbook and Media List of Accounts 1