The Kramer Company uses job-order costing. Overhead is applied based on direct labor hours. The following numbers are for 2002 : Required: 1. Compute overhead rate assuming Kramer applies overhead to production on the basis of direct labor hours. 2. Show all of the transactions in the WIP Inventory t-account for 2002. 3. What was unadjusted net income for 2002 ? (prior to closing out the overhead variance). 4. Assuming that the overhead variance is material, show the adjusted balances for WIP. FG and COGS accounts: 5. Assume that the adjustment in requirement "4" was NOT recorded. Instead, assume that the over or under applied overhead was determined to be immaterial in amount and an adjusting entry is made. Will the following items be increased, decreased or unaffected by the adjusting entry? Circle (or highlight) your answer for each