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 86,000 37,000 Direct labor-hours 34,500 56,600 Direct materials cost $185,000 $195,000 Direct labor cost $285,000 $530,000 Fixed manufacturing overhead cost $197,800 $560,340 Variable manufacturing overhead per machine-hour $2.40 - Variable manufacturing overhead per direct labor-hour - $4.40 ________________________________________ 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 69 Direct labor-hours 85 134 Direct materials cost $940 $1,200 Direct labor cost $700 $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 two decimal places.) 3-a. What would be the total cost recorded for Job 127? (Round your intermediate calculations to two decimal places.) 3-b. If the job contained 23 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 85,800 24,900 Direct labor-hours 33,000 53,000 Direct materials cost $163,200 $422,000 Manufacturing overhead cost $414,060 $720,700 ________________________________________ What was the amount of underapplied or overapplied overhead in each department at the end of the year?