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.)

2. Compute the total overhead cost applied to Job 127.

3-a. What would be the total cost recorded for Job 127?

3-b. If the job contained 25 units, what would be the unit product cost? (Round your 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:

	Department
	Preparation			Fabrication
Machine-hours		73,000			24,000
Direct labour-hours		30,000			68,000
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?