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In: AccountingIn December 2016, Custom Mfg. established its predeterminedoverhead rate for jobs produced during 2017 by...In December 2016, Custom Mfg. established its predeterminedoverhead rate for jobs produced during 2017 by using the followingcost predictions: overhead costs, $1,550,000, and direct materialscosts, $500,000. At year-end 2017, the company’s records show thatactual overhead costs for the year are $1,624,100. Actual directmaterial cost had been assigned to jobs as follows.Jobs completed andsold$400,000Jobs in finished goodsinventory70,000Jobs in work in processinventory51,000Total actual direct materialscost$521,0001. Determine the predetermined overhead rate for2017.2&3. Enter the overhead costs incurred and theamounts applied during the year using the predetermined overheadrate and determine whether overhead is overapplied orunderapplied.4. Prepare the adjusting entry to allocate anyover- or underapplied overhead to Cost of Goods Sold.1.Overhead RateChoose Numerator:/ChooseDenominator:=Overhead Rate/=Overheadrate/=02&3.Factory Overhead04.DateGeneral JournalDebitCreditDec 31