Question 1. Determining Under & Over applied overhead (13 marks)Roller Industries uses a job-order costing system and applies overhead on the basis ofdirect labour hours.At the beginning of 2014, management estimated that 200,000 direct labour hours wouldbe worked and $600,000 of overhead costs would be incurred.During the year, the company actually worked 220,000 direct labour hours and incurredthe following manufacturing costs:Indirect labour $140,000Indirect materials 100,000Insurance 50,000Utilities 90,000Repairs & maintenance 80,000Depreciation 180,000Direct materials used in production 540,000Direct labour 700,000Required:a) Calculate the budgeted factory overhead application rate for 2014.b) Determine the amount of manufacturing overhead applied to work in process during2014.c) Determine the amount of underapplied or overapplied overhead for the year.