O'Leary Corporatilon manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. Itonly bullds to order (each unit is bullt to customer specifications). O'Leary uses a normal Job costing system. Direct labor at O'Leary Ispald $30 per hour, but the employees are not pald if they are not working on Jobs. Manufacturing overhead is assigned to Jobs by apredetermined rate on the basis of direct labor-hours. The company Incurred manufacturing overhead costs during two recent years(adjusted for price-level changes using current prices and wage rates) as follows.Year 169, 6eeYear 256,600Direct labor-hours workedManufacturing overhead costs incurredIndirect laborEmployee benefitsSuppliesРомег$2,864,8801,844, 000696,000653,000143, 200$2, 264, e00849, e00566,e00548,008143, 200664, ese2,e60, 500829, 250Heat and lightSupervisionDepreciationProperty taxes and insurance783,7902,868, 500B03,510Total manufacturing overhead costs$9,848, 000$7,924,800At the beginning of year 3, O'Leary has two jobs, which have not yet been delvered to customers. Job MC-270 was completed onDecember 27. year 2. It is scheduled to ship on January 7. year 3. Job MC-275 Is still in progress. For the purpose of computing thepredetermined overhead rate. O'Leary uses the previous year's actual overhead rate. Data on direct materlal costs and direct labor-hours for these Jobs in year 2 follow.Job MC-270Job MC-275Direct material costs$272,6002,638 hours$497, 6ee3,330 hoursDirect labor-hoursDuring year 3. O'Leary Incurred the following direct materlal costs and direct labor-hours for all jobs worked in year 3, Including thecompletion of Job MC-275.$11, 842, 6e076,600$ 9,744,880Direct material costsDirect labor-hoursActual manufacturing overheadAt the end of year 3, there were four Jobs that had not yet shipped. Data on these Jobs follow.MC-389$45,8001,766 hoursMC-399$31,5e01,438 hoursMC-390MC-397Direct materials$69,6e02,830 hours$166, 1006,230 hoursDirect labor-hoursJob statusIn progressIn progressFinishedFinishedRequlred:a. What was the amount In the beginning Finished Goods and beginning Work-in-Process accounts for year 3?b. O'Leary Incurred direct materlals costs of $59.600 and used an additional 560 hours In year 3 to complete Job MC-275. What wasthe final (total) cost charged to Job MC-275?c. What was over- or underapplied overhead for year 3?d. O'Leary prorates any over- or underapplied overhead to Cost of Goods Sold, Finished Goods Inventory, and Work-In-ProcessInventory. Prepare the Jounal entry to prorate the over- or underapplied overhead.e. A customer has asked O'Leary to bid on a Job to be completed in year 4. O'Leary estimates that the Job will require about $93.800In direct materlals and 5,130 direct labor-hours. Because of the economy. O'Leary expects demand for Its services to be low In year 4.and the CEO wants to bid aggressively, but does not want to lose any money on the project. O'Leary estimates that there would bevirtually no sales or administrative costs associated with this Job. What is the minimum amount O'Leary can bid on the Job and still notIncur a loss?

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O'Leary Corporation manufactures special purpose portable structures (huts, mobile offices, and so on) for use at construction sites. It only bullds to order (each unit is bullt to customer specifications). O'Leary uses a normal Job costing system. Direct labor at O'Leary Is paid $30 per hour, but the employees are not pald if they are not working on Jobs. Manufacturing overhead is assigned to Jobs by a predetermined rate on the basis of direct labor-hours. The company Incurred manufacturing overhead costs during two recent years adjusted for price-level changes using current prices and wage rates) as follows. Year 1 Year 2 Direct labor-hours worked Manufacturing overhead costs incurred Indirect labor 69,6ee 56, 6ee $2, 264, 00e 849, e0e 566,000 548,e0e 143, 200 664, ese 2,86e, see 829, 250 $2,864, 00e 1,844, 00e 696,00e 653,000 Employee benefits Supplies Power Heat and light Supervision Depreciation Property taxes and insurance 143, 200 783,79e 2,86e, see s83,518 $9,848, 000 Total manufacturing overhead costs $7,924, 000 At the beginning of year 3, O'Leary has two Jobs, which have not yet been dellivered to customers. Job MC-270 was completed on December 27. year Ź It is scheduled to ship on January 7. year 3. Job MC-275 Is stll in progress. For the purpose of computing the predetermined overhead rate. O'Leary uses the previous year's actual overhead rate. Data on direct materlal costs and direct labor- hours for these jobs in year 2 follow. Job MC-270 $272,600 Job MC-275 $497,600 3,330 hours Direct material costs Direct labor-hours 2,638 hours During year 3, O'Leary Incurred the following direct material costs and direct labor-hours for all Jobs worked in year 3, Including the completion of Job Mć275. Direct material costs $11,842, Gee 76,6ee $ 9,744, 000 Direct labor-hours Actual manufacturing overhead At the end of year 3, there were four jobs that had not yet shipped. Data on these Jobs follow. MC-389 MC-398 $69,6ee MC-397 $106, 188 6,230 hours 1,430 hours In progress MC-399 $31,5ee Direct materials $45,8ee 1,766 hours Finished Direct labor-hours 2,830 hours Finished In progress Job status Required: a. What was the amount in the beginning Finished Goods and beginning Work-In-Process accounts for year 3? b. O'Leary Incurred direct materials costs of $59.600 and used an additional 560 hours In year 3 to complete Job MC-275. What was the final (total) cost charged to Job MC-275? c. What was over- or underapplied overhead for year 3?