Cum Propris SAS V Question 2 - Week 3 (9a) (11 marks) Luxury Goods Pty Ltd allocates manufacturing overhead to work in process on the basis of machine hours. On 1 January of the current year, there were no balances in work in process or finished goods inventories. The following estimates were included in the budget for the current year: Total estimated manufacturing overhead $300 000 Total estimated machine hours 40 000 During January, the firm worked on the following production jobs: B81: 1 600 machine hours J76: 2 400 machine hours M49: 1000 machine hours During January, job numbers B81 and J76 were completed, and job number B81 was sold. The actual manufacturing overhead incurred during January was $30 000. Required: a) Calculate the company's predetermined overhead rate for the year. b) How much manufacturing overhead was applied to production during January? c) Calculate the overapplied or underapplied overhead for January. SHOW YOUR WORKING