Fran€™s Custom Motors uses a job-order costing system. The firm had two jobs in process at the start of the April: job no. 401 (cost : $211,250) and job no. 402 (cost: $53,400). The following information is available:
€¢ The company applies manufacturing overhead based on machine hours. Budgeted overhead was $275,000 and budgeted machine hours were 20,000 hours.
€¢ There was no beginning balance in the finished goods account.
€¢ The company worked on four jobs during the month. The following data pertain to the associated costs.

€¢ Manufacturing overhead during April included charges for depreciation ($50,000), indirect labor ($53,000), indirect materials used ($26,250), and other factory costs ($168,000).
€¢ Fran€™s completed job no. 401 and job no. 402 during the period. Job no. 402 was sold, producing a profit of $24,000 for the firm.

Required:
a. Determine the company€™s predetermined overhead application rate.
b. Calculate the ending balance for the finished goods account.
c. Calculate under- or overappliedoverhead.

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Job No. Divect Male 401 $33,000 402 403 404 Diedt Labr Mace Hours $42,500 $46,000 $132,750 $15,200 $27,300 $24,750 $72,500 2,500 6,800 6,500 12,000