Disney faces many situations where it needs to apply the decision tools learned in this chapter, such as using a job cost sheet to determine a films profitability. For example, assume Disney uses a job order cost system and applies overhead to production of its films on the basis of direct labor cost. In computing a predetermined overhead rate for the year $2022,$ the company estimated film production overhead to be $$24$ million and direct labor costs to be $$20$ million. In addition, its accounting records included the following information.Actual Costs Incurred During $2022$DISNEY $1.$pngInstructionsAnswer each of the following.Why is Disney using a job order cost system?On what basis does Disney apply its film production overhead? Compute the predetermined overhead rate for $2022.$Compute the amount of the under$-$ or overapplied overhead for $2022.$Disney had balances in the beginning and ending films in process and finished films accounts as follows.DISNEY $2.$pngDetermine the $(1)$ cost of films completed and $(2)$ cost of films sold for Disney during $2022.$ Assume that any under$-$ or overapplied overhead is included in the cost of films sold.During $2022,$ Film G$408($a short documentary film produced for a customer$)$ was started and completed. Its cost sheet showed a total cost of $$100,000,$ and Disney prices its film at $50\%$ above its cost. What is the price to the customer if the company follows this pricing strategy?