Assignment Question for Chapter 5: PROBLEM 518 Medusa Products uses a job-order costing system. Ovethead costs are applied to jobs on the basis of machine-bours. At the beginning of the year, management estimated that the company would incur $170,000 in manufacturing overhead costs for the year and work 35.000 machine-hours. Requneth 1. Compute the company's predetermined overhead rate. 2. Assume that during the year the company actuatly works only 80,000 machine-hours and incurs the following costs in the Manufactaring Overhead and Work in Process accounats: Copy the data in the Taccounts above onto your answer sheet. Compute the amount of overtead cost that would be applied to Work in Process for the year, and make the eatry in your Taccounts. 3. Compute the amouat of underapplied of overapplied orethead for the jeat, and show the batance in your Manufacturing Overaead Taccount. Prepare a journat entry to properfy dispose of the balasce. 4. Explain wiy the manufacturing ovethead was undetapplied or oretapplied for the year