CMG uses a normal job order costing system and applies overhead on the basis of direct labor hours. At the beginning of 2022, management estimated that 250,000 direct labor hours would be worked and $400,000 of overhead costs would be incurred. During 2022, the company had 270,000 direct labor hours and incurred the following production costs:

a. What was the predetermined overhead rate?

b. What was the amount of overhead allocated during the year?

c. What was the ending balance of the work in process inventory? Assume there was no beginning work in process inventory. 

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Prime costs (direct materials and direct labor) Indirect materials and indirect labor Insurance and utilities Depreciation and repairs Cost of jobs completed during the year $730,000 $110,000 $125,000 $175,000 $200,000