) The Bright Light Company is located in Toronto, Ontario, Canada. The company has been in business for 10 years and they manufacture electronic components. The company uses job order costing and applies manufacturing overhead based on machine hours. The financial information pertaining to the manufacturing overhead, labour, and machine hours for all the jobs for the 2022 year is as follows:

Actual manufacturing overhead.......................... $426,500

Estimated manufacturing overhead......... $450,000

Machine hours estimated......................... 10,000

Machine hours actual............................... 10,500

Direct labour hours incurred....................... 6,200

Direct labour hours estimated.................... 6,000

Answer the following Questions:

a) Calculate the predetermined overhead rate.

b) If job 1A used 10 machine hours, 20 labour hours calculate the overhead applied to job 1A.

c) For manufacturing overhead for the year calculate the amount of under applied or over applied.

d) Explain the difference between actual overhead and applied overhead.