The following data were taken from the records of Carla Vista Enterprises, a Canadian manufacturer that uses a normal job-order costing system: Work in Process, December 1 Job Number 70 75 80 Direct materials $1,960 $2,620 $1,640 Direct labour 1,310 2,620 650 Applied overhead 650 1,470 490 Total $3,920 $6,710 $2,780 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 $650 $980 $1,310 $1,470 $1,640 $6,050 Direct labour $820 $1,640 $3,270 $2,450 $6,540 $14,720 Direct labour hours 50 110 220 160 440 980 Additional information: 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 $163,560, and the total labour hours worked would be 13,630. The balance in the Departmental Overhead Control account on December 1 was $174,410. Actual direct labour hours for the previous 11 months (January through November) were 12,260. 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 $8,180 Salaries Production clerk 1,640 Supervisor 2,400 Depreciation (plant and equipment) 2,710 Factory supplies 1,640 Sales staff salaries 10,030 Utilities (factory) 1,960 Administrative expenses 10,360 $38,920 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 $38,920. 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 4. The unadjusted gross margin for December +A $ per labour hour $ +A $ Calculate the under- or over-applied overhead for the year. Overhead $ What effect would this amount have on net income? Net income will be by $