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 labor-hours. 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 labor-hours	35,000	50,000
Direct materials cost	$190,000	$400,000
Direct labor cost	$280,000	$530,000
Fixed manufacturing overhead cost	$256,000	$520,000
Variable manufacturing overhead per machine-hour	$2.00	-
Variable manufacturing overhead per direct labor-hour	-	$4.00

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

	Department
	Preparation		Fabrication
Machine-hours		350		70
Direct labor-hours		80		130
Direct materials cost	$	940	$	1,200
Direct labor 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 your answers to 2 decimal places.)

2.	Compute the total overhead cost applied to Job 127. (Round your intermediate calculations to 2 decimal places.)

3-a.	What would be the total cost recorded for Job 127? (Round your intermediate calculations to 2 decimal places.)

3-b.	If the job contained 25 units, what would be the unit product cost? (Round your intermediate calculations and final answer to 2 decimal places.)

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: (Round your intermediate calculations to 2 decimal places.)

	Department
	Preparation	Fabrication
Machine-hours	73,000	24,000
Direct labor-hours	30,000	54,000
Direct materials cost	$165,000	$420,000
Manufacturing overhead cost	$390,000	$740,000

	What was the amount of underapplied or overapplied overhead in each department at the end of the year?