tice Problem #4 S Company, which uses a job-costing system, began business on January 1, and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to the first year of operations Budgeted direct labor and manufacturing overhead were anticipated to be $200,000 and $250,000, respectively Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct material and direct labor: $145,000 320,000 55,000 $35,000 65,000 80,000 Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production. Actual manufacturing overhead by year-end totaled $233,000. Rock Star adjusts all under- and overapplied overhead to cost of goods sold Compute the company's predetermined overhead application rate. a) b) Compute Rock Star's ending work-in-process inventory. c) Determine Rock Star's sales revenue. d) Was manufacturing overhead under- or overapplied during 20x3? Required: By how much? Present the necessary journal entry to handle under- or overapplied manufacturing overhead at year-end Does the presence of under- or overapplied overhead at year-end indicate that Rock Star's accountants made a serious error? e) f)