Problem - Fran's Custom Motors uses a job-order costing system. The firm had two jobs in process at the start of the April: job no. 401 (cost: $211,250) and job no. 402 (cost: $53,400). The following information in available:

*The company applies manufacturing overhead based on machine hours. Budgeted overhead was $275,000 and budgeted machine hours were 20,000 hours.

*There was no beginning balance in the finished goods account.

*The company worked on four jobs during the month. The following data pertain to the associated costs.

Job No. Direct Materials Direct Labor Machine Hrs

401 $33,000 $15,200 2,500

402 42,500 27,300 6,800

403 46,000 24,750 6,500

404 132,750 72,500 12,000

*Manufacturing overhead during April included charges for depreciation ($50,000), indirect labor ($53,000), indirect materials under ($26,250), and other factory costs ($168,000).

*Fran's completed job no. 401 and job no. 402 during the period. Job no. 402 was sold, producing a profit of $24,000 for the firm.

a. Determine the company's predetermined overhead application rate.

b. Calculate the ending balance for the finished goods account.

c. Calculate under or overapplied overhead.