Riffa Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted manufacturing overhead for the year was $455,600, and management budgeted 33,500 direct labor-hours. The company had no Materials, Work-in-Process, or Finished Goods Inventories at the beginning of April. These transactions were recorded during April: a. Paid$3,140 premium insurance cost for the manufacturing property and equipment. b. Recorded $1,340 depreciation on an administrative asset. c. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect materials). d. Paid factory utility bill, $6,870, in cash. Incurred 4,000 labour hours and paid labour costs of $160,000. Of this amount, 1,000 labour hours and $20,000 were indirect labor costs. f. Incurred and paid other manufacturing overhead costs, $6,540. g. Purchased $29,000 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. h. Requisitioned $23,000 of direct materials and $3,390 of indirect materials from Materials Inventory. i. Incurred miscellaneous selling and administrative expenses, $6,920. j. Incurred $4,450 depreciation on manufacturing equipment for April. k. Paid advertising expenses in cash, $3,325. 1. Applied/allocated Manufacturing overhead to production on the basis of direct labor hours. m. Completed goods costing $68,500 during the month. n. Made sales on account in April, $68,300. The Cost of Goods Sold was $55,420. The firm's chart of accounts follows 101 Cash 106 124 128 167 Equipment 168 Accumulated Depreciation 300 Materials inventory Accounts Receivable Cost of goods sold Selling & administrative expense Sales Revenues Accounts payable Advertising expense. 400 405 612 622 Factory/manufacturing overhead 301 Work-in-process inventory 302 Finishing goods inventory 623 Factory/manufacturing overhead applied Required: 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the April events. 3. Calculate the amount of overapplied or underapplied overhead on April 30.