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A review of the records of Mile Limited, a new company, disclosed the following year-endinformation:Manufacturing Overhead account: Debit balance of $872,000, which included $20,000 ofsales commissions. Work in Process account: Included a charges for overhead of $875,000. Cost of Goods Sold account: a year-end debit balance of $3,680,000. This amount wascomputed prior to any year-end adjustment for under- or overapplied overhead.Mile applies manufacturing overhead to production by using a predetermined rate of $20 permachine hour. Budgeted overhead for the period was anticipated to be $900,000. Required:a. Determine the actual manufacturing overhead for the year. (4 marks)b. Determine the amount of manufacturing overhead applied to production. (4 marks)c. Is overhead under- or overapplied? By how much? (4 marks)d. Compute the adjusted cost-of-goods-sold figure that should be disclosed on the company'sincome statement. (4 marks) A review of the records of Mile Limited, a new company, disclosed the following year-endinformation:Manufacturing Overhead account: Debit balance of $872,000, which included $20,000 ofsales commissions. Work in Process account: Included a charges for overhead of $875,000. Cost of Goods Sold account: a year-end debit balance of $3,680,000. This amount wascomputed prior to any year-end adjustment for under- or overapplied overhead.Mile applies manufacturing overhead to production by using a predetermined rate of $20 permachine hour. Budgeted overhead for the period was anticipated to be $900,000. Required:a. Determine the actual manufacturing overhead for the year. (4 marks)b. Determine the amount of manufacturing overhead applied to production. (4 marks)c. Is overhead under- or overapplied? By how much? (4 marks)d. Compute the adjusted cost-of-goods-sold figure that should be disclosed on the company'sincome statement. (4 marks)

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