2. (8 points) Garrison, Inc., which uses a job-costing system, began business on January 1, 20x3 and applies manufacturing overhead on the basis of direct-labor cost. The following information relates to 20x3:

• Budgeted direct labor and manufacturing overhead were anticipated to be $200,000 and $250,000, respectively.
• Job nos. 1, 2, and 3 were begun during the year and had the following charges for direct material and direct labor:

Job No.	Direct Materials	Direct Labor
1	$145,000	$35,000
2	320,000	65,000
3	55,000	80,000

• Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production.
• Actual manufacturing overhead by year-end totaled $233,000. Garrison adjusts all under- and overapplied overhead to cost of goods sold.

A. Compute the company's predetermined overhead application rate.

B. Compute Garrisons ending work-in-process inventory.

C. Determine Garrisons sales revenue.

D. Was manufacturing overhead under- or overapplied during 20x3? By how much?