The job sheet is completed in the attached packet. Can anyone help With question 2?

Individual Project 1 Job Costing - 25 points Due in class February 15th Blumhardt's Barbeque Grills builds customized barbeque grills. All grills goes through two production departments: Building (BLD) and Painting (PNT). The company uses a normal, job-order costing system, and overhead is applied using departmental rates. The rate for BLD is $15 per machine hour (MH) and the rate for PNT is $12.75 per direct labor hour (DLH). Company policy is to close any over- or underapplied overhead directly to Cost of Goods Sold at the end of each month. You will receive a packet containing job cost reports and copies of selected source documents for the month of February. At the beginning of the month, two jobs were already in production (#501 and #502). During February, two additional jobs were started (#503 and #504). Required: 1. Complete the company's Job Cost Reports using the information provided in the packet. 2. Calculate the following amounts for the month of February: Ending Work-in-Process balance Cost of goods manufactured Over-/underapplied overhead Cost of goods sold AFTER adjusting for any over-/underapplied overhead 3. Prepare an income statement for February. The company's income tax rate is 35% 4. Answer the following questions: Why would a business choose to use a predetermined (estimated) overhead rate instead of an actual overhead rate? A more accurate method for disposing of over-/underapplied overhead is to prorate it among work-inprocess inventories, finished goods inventories and Cost of Goods Sold. Do you think Blumhardt's Barbeque Grills is justified in using the direct write-off approach instead? Why or why not? 5. Turn in the following Completed job cost reports Answers to parts 2, 3, and 4 (must be typed) All supporting calculations (may be handwritten) 6. Turn in group evaluation (if applicable) - 1 per person. For each person in your group (including yourself), evaluate participation as follows: 4 - did at least their fair share = All group members 3 - did slightly less than their fair share 2 - did significantly less than their fair share 1 - meant to participate but never showed up 0 - who? BONUS OPPORTUNITY: 5 points for best in class; 10 points for best overall Blumhardt's Barbeque Grills: Job Cost Sheet Job #: 501 Description: 35 Grills for Bolmer's Backyard Grills Direct Material Date Req# Jan 21 R1219 Amount Direct Labor Date Dept Hrs Rate $1,250 Jan 29 BLD 120 $13.00 Jan 29 PNT 80 Feb 12 BLD Feb 12 PNT Date Started: 1/20/16 Date Completed: 2/16/16 Manufacturing Overhead Amount Date Dept Base Hrs Rate $1,560 Jan 29 BLD MH 100 $15.00 $1,500 $18.00 $1,440 Jan 29 PNT DLH 80 $12.75 $1,020 180 $13.00 $2340 Feb 12 BLD MH 190 $15 $2850 240 $18.00 $4320 Feb 12 PNT PLH 240 $12.75 $3060 Completed Job Cost: Date Sold: Amount $19,340 2/17/2016 Blumhardt's Barbeque Grills: Job Cost Sheet Job #: 502 Description: 60 Grills for Hudson's Hamburgers Direct Material Date Req# Amount Direct Labor Date Dept Hrs Rate Date Started: 1/25/16 Date Completed: 2/16/16 Manufacturing Overhead Amount Date Dept Base Hrs Rate Amount Jan 25 R1220 $2,750 Jan 29 BLD 70 $13.00 $910 Jan 29 BLD MH 80 $15.00 $1,200 Feb 1 R1221 $3010 Feb 12 BLD 140 $13.00 $1820 Feb 12 BLD MH 160 $15.00 $2400 Feb 2 R1223 $1090 Feb 12 PNT 280 $18.00 $5040 Feb 12 PNT DLH 280 $12.75 $3570 Feb 26 PNT 120 $18.00 $2160 Feb 26 PNT DLH 120 $12.75 $1530 Completed Job Cost: $25,480 Date Sold: 2/27/16 Blumhardt's Barbeque Grills: Job Cost Sheet Job #: 503 Description: 120 Grills for Krttit's Koolers Inc. Direct Material Date Req# Feb 5 R1222 Feb 5 Direct Labor Amount Date Dept Hrs Rate $6450 Feb 12 BLD 370 $13.00 R1224 $3930 Feb 16 BLD 350 Feb 19 R1227 $4580 Feb 26 PNT 240 Date Started: 2/5/2016 Date Completed: 2/24/16 Manufacturing Overhead Amount Date Dept Base Hrs Rate Amount $4810 Feb 12 BLD MH 200 $15.00 $3000 $13.00 $4550 Feb 26 BLD MH 220 $15.00 $3300 $18.00 $4320 Feb 26 PNT DLH 240 $12.75 $3060 Completed Job Cost: $38,000 Date Sold: 2/28/16 Blumhardt's Barbeque Grills: Job Cost Sheet Job #: 504 Description: 15 Grills for Davts Dawys LLC Direct Material Date Req# Feb 26 R1228 Direct Labor Amount Date Dept Hrs Rate $850 Feb 26 BLD 60 $13.00 Feb 26 PNT 40 $18.00 Date Started: 2/22/16 Date Completed: 2/24/16 Manufacturing Overhead Amount Date Dept Base Hrs Rate Amount $780 Feb 26 PNT DLH 40 $12.75 $510 $720 Feb 26 BLD MH 20 $15.00 $300 Completed Job Cost: Date Sold: $3,160 2/27/2016