The Mandy Company is a manufacturer of custom-made fiberglass surfboards and silk swimwear. The Company uses a job order cost system to account for its operations. Mandy has a small production shop and one office building and the majority of the work done on both products is by machine operators. cost estimates for the year. Dosring 2008 the accountant for Mandy Company, Trustworthy Todd, developed the following selected Period Product Estimated Costs Type Fixed Admin Variable DM Rent on Office Rent on Production Shop Fiberglass for Surfboards Silk for swimwear Insurance on Office Insurance on Production Shop Indirect Production materials Utilities on Office... Utilities on Production Shop Depreciation, Product Equip Janitor Salary Production Shop Wages of Machine Operators - $ 1.000 $ 2.000 S 5.000 $ 7.000 $ 4,000 $ 6,000 $ 1,500 S 10.000 $ 12,000 $ 15,000 $ 9.500 $ 50,000 It is estimated that the total machine hours to be worked during the year are 10,000. The Company applies overhead based on machine hours. Required (Use the data above) 1. Compute the estimate of total direct materials cost. DM S Total 2. Identify which amount represents Direct Labor cost. $ 3. Compute the total amount for all period costs. Period Costs Total 4. Compute the estimate of total manufacturing overhead costs Overhead S LA Total 5. Compute the predetermined overhead rate (OHR) per machine hour. OHR 6. If the total machine hours worked during the year were 9,000 and the total actual manufac- turing overhead costs were $44,400, what would be the amount of the over or underapplied overhead? Overhead Actual Applied 7. What effect does the under applied overhead amount in (6) above have on Cost of Goods Sold, and Net Income when it is closed out? Explain. 8. How would your answer to (5) above change if the company used direct labor cost to apply overhead instead of machine hours? Show the new calculation! OHR = 9. Why do you think the company first selected machine hours as an allocation base? Explain. 10. What type of account is cost of goods sold