The following data were taken from the records of Cullumber Enterprises, a Canadian manufacturer that uses a normal job-order costing system: Work in Process, December 1 Job Number 70 75 80 Direct materials $1,850 $2,470 $1,550 Direct labour 1,240 2,470 620 Applied overhead 620 1,390 460 Total $3,710 $6,330 $2,630 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 $620 $930 $1,240 $1,390 $1,550 $5,730 Direct labour $770 $1,550 $3,090 $2,320 $6,180 $13,910 Direct labour hours 50 100 210 150 410 920 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 $154,560, and the total labour hours worked would be 12,880. The balance in the Departmental Overhead Control account on December 1 was $164,810. Actual direct labour hours for the previous 11 months (January through November) were 11,590. 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 $7,730 Salaries Production clerk 1,550 Supervisor 2,270 Depreciation (plant and equipment) 2,560 Factory supplies 1,550 Sales staff salaries 9,480 Utilities (factory) 1,850 Administrative expenses 9,790 $36,780 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 $36,780. 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 $ eTextbook and Media List of Accounts Question Part Score 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 $ per labour hour --/8