Waterloo PPE company has a job-order costing system. The company uses predetermined overhead rates in applying manufacturing overhead cost to individual jobs. The predetermined overhead rate in Department A is based on machine hours, and the rate in Department B is based on direct materials cost. At the beginning of the most recent year, the company's management made the following estimates for the year: Department A B Machine-hours 80,000 20,000 Direct labour- 30,000 60,000 hours Direct materials $240,250 $300,000 cost Direct labour $ 270,000 $ 570,000 cost Manufacturing $420,000 $705,000 overhead cost Job 276 entered into production on June 1st and was completed on July 12th. The company's cost records show the following information about the job: Department A Machine-hours 450 Direct labour- 70 hours Direct materials $1,000 B 75 140 $1,100 75 140 Machine-hours 450 Direct labour 70 hours Direct materials $1,000 cost Direct labour $700 cost $1,100 $900 At the end of the year, the records of Waterloo showed the following actual cost and operating data for all jobs worked on during the year: B 35,000 70,000 Department A Machine-hours 75,000 Direct labour- 30,000 hours Direct materials $160,000 cost Manufacturing $390,000 overhead cost $290,000 $ 705,000 Required: a.) Compute the predetermined overhead rates for Department A and Department B. b.) Compute the total overhead cost applied to Job 243. c.) Compute the amount of underapplied or overapplied overhead in each department at the end of the current year. 11