WoodGrain Technology makes home office furniture from fine hardwoods. The company uses a job-order costing system and predetermined overhead rates to apply manufacturing overhead cost to jobs. The predetermined overhead rate in the Preparation Department is based on machine-hours, and the rate in the Fabrication Department is based on direct materials cost. At the beginning of the year, the companys management made the following estimates for the year:

	Department
	Preparation			Fabrication
Machine-hours		80,000			21,000
Direct labour-hours		35,000			65,000
Direct materials cost	$	190,000		$	400,000
Direct labour cost	$	280,000		$	530,000
Manufacturing overhead cost	$	416,000		$	720,000

Job 127 was started on April 1 and completed on May 12. The companys cost records show the following information concerning the job:

	Department
	Preparation			Fabrication
Machine-hours		350			70
Direct labour-hours		80			130
Direct materials cost	$	940		$	1,200
Direct labour cost	$	710		$	980

Required: 1. Compute the predetermined overhead rate used during the year in the Preparation Department. Compute the rate used in the Fabrication Department. (Round "Preparation department" answer to 2 decimal places.) Answer is complete but not entirely correct. $ Predetermined Overhead Rate per machine-hour 14 % of materials cost Preparation department Fabrication department 5.20 2. Compute the total overhead cost applied to Job 127. Answer is complete but not entirely correct. Total overhead cost $ 3,692 3-a. What would be the total cost recorded for Job 127? Answer is complete but not entirely correct. WOODGRAIN TECHNOLOGY Preparation Fabrication Direct materials 940 $ 1,200 Direct labour 710 980 Manufacturing overhead 1,820 1,872 Total cost $ 3,470 S 4,052 Total $ 2,140 1,690 3,692 S 7,522 3-b. If the job contained 25 units, what would be the unit product cost? (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Unit product $ 300.88 per cost unit 4. At the end of the year, the records of WoodGrain Technology revealed the following actual cost and operating data for all jobs worked on during the year: Machine-hours Direct labour-hours Direct materials cost Manufacturing overhead cost Department Preparation Fabrication 73,000 24,000 30,000 68,000 $165,000 $420,000 $390,000 $ 740,000 What was the amount of underapplied or overapplied overhead in each department at the end of the year? Answer is complete but not entirely correct. Underapplied overhead $ (10,400) Preparation department Fabrication department Overapplied overhead $ 37,600