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 company's management made the following estimates for the year:

DepartmentPreparationFabricationMachine-hours80,00021,000Direct labour-hours35,00065,000Direct materials cost$190,000$400,000Direct labour cost$280,000$530,000Manufacturing overhead cost$416,000$720,000

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

DepartmentPreparationFabricationMachine-hours35070Direct labour-hours80130Direct materials cost$940$1,200Direct 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 followingactualcost and operating data for all jobs worked on during the year:

DepartmentPreparationFabricationMachine-hours73,00024,000Direct labour-hours30,00068,000Direct materials cost$165,000$420,000Manufacturing overhead cost$390,000$740,000

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