Tile tech makes tiles from ceramic $.$ The co applies predetermined overhead rates to jobs in a job order costing system. The predetermine overhead rate in the Mixing section is based on machine hours and in the baking section on direct labour hours. At the beging of year, the company had the following estimates for the year. Machine hours mixing $80000$ baking $21000$ Direct labour hrs mixing $35000$ baking $50000$ Direct materials cost mixing $$190,000$ Baking $$400,000$ Direct labour cost mixing $$280,000$ baking $$530,000$ Fixed Man OH cost $$256,000$ baking $$520,000$ Var. Man. OH per machine hr mixing $$2,00$ baking$$0\mathrm{.}00$ Var. Man. OH per labour hr mixing $$0\mathrm{.}00$ baking $$4\mathrm{.}00$ Job $285$ started on June $1$ and completed on July $13$ Machined hrs mixing $350$ baking $70$ Direct labour hrs mixing $80$ baking $130$ Diirect mater mixing $$940$ baking $$1200$ Direct labour cost mixing $$710$ Baking $ $980$ Compute the predertermined overhead rate used in th mixing and baking sections. $2$ Compute the total overhead cost applied to job $285.$ At the end of the year the actual cost and operating data for all the jobs worked on during the year: Machine hrs mixing $73000$ baking $24000$ Direct labour hrs mixing $30000$ baking $54000$ Direct material cost Mixing $$165,000$ baking $$420,000$ Man OH cost $mixing $$390,000$ baking $$740,000$ Compute the amount of underapplied or overapplied that should be in each section at the end of the year. Show calculations. What would be the effect of the underapplied or over applied overhead in each department on the company's gross margin?