The MBAH Corporation operates a job order cost system. A predetermined overhead rate based on direct labor hours is used to apply manufacturing overhead to the jobs. Estimated cost and operating data for 2021 are shown below: At the end of 2021, the firm's accounting records include the following actual cost and operating data: Required: 1. What was the firm's predetermined overhead rate for 2021? 2. Determine the over- or underapplied manufacturing overhead for 2021. 3. If the company closes any over- or underapplied overhead to cost of goods sold, prepare the closing entry for 2021. 4. Prorate any over- or underapplied overhead to the appropriate inventory accounts and cost of goods sold account, and prepare the closing entry for 2021 . 5. What would be the difference in the firm's net income between C and D above
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