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In: AccountingSmithson Company uses a job-order costing system and has twomanufacturing departments—Molding and Fabrication. The company...Smithson Company uses a job-order costing system and has twomanufacturing departments—Molding and Fabrication. The companyprovided the following estimates at the beginning of the year: MoldingFabricationTotal Machine-hours24,00034,000 58,000 Fixed manufacturing overhead costs$770,000$230,000 $ 1,000,000 Variable manufacturing overhead permachine-hour$5.00$5.00 During the year, the company had no beginning or endinginventories and it started, completed, and sold only two jobs—JobD-75 and Job C-100. It provided the following information relatedto those two jobs: Job D-75:MoldingFabricationTotal Direct materials cost$373,000$326,000$699,000 Direct labor cost$250,000$170,000$420,000 Machine-hours17,0007,00024,000 Job C-100:MoldingFabricationTotal Direct materials cost$290,000$270,000$560,000 Direct labor cost$160,000$300,000$460,000 Machine-hours7,00027,00034,000 Smithson had no overapplied or underapplied manufacturing overheadduring the year.eBook & ResourceseBook: JOB-ORDER COSTING—AN EXAMPLE – LO 1eBook: JOB-ORDERCOSTING—AN EXAMPLE – LO 2eBook: JOB-ORDER COSTING—AN EXAMPLE – LO38.value:3.00 pointsRequired informationRequired:Assume Smithson uses a plantwide overhead rate based onmachine-hours.1-a.Compute the predetermined plantwide overhead rate.(Round your answer to 2 decimal places.) Predetermined overhead rate$ per MH 1-b.Compute the total manufacturing costs assigned to Job D-75 andJob C-100. (Round your intermediatecalculations to 2 decimal places.) Total ManufacturingCost Job D-75$ Job C-100$ 1-c.If Smithson establishes bid prices that are 120% of totalmanufacturing costs, what bid price would it have established forJob D-75 and Job C-100? (Round yourintermediate calculations to 2 decimalplaces.) Bid price Job D-75$ Job C-100$ 1-d.What is Smithson’s cost of goods sold for the year?(Round your intermediate calculations to 2decimal places.) Cost of goods sold$ ReferenceseBook & ResourcesWorksheetLearning Objective: 02-01 Compute a predeterminedoverhead rate.Learning Objective: 02-03 Compute the total cost andaverage cost per unit of a job.Difficulty: HardLearning Objective: 02-02 Apply overhead cost tojobs using a predetermined overhead rate.Ask your instructor a questionCheck my work9.value:3.00 pointsRequired informationAssume Smithson uses departmental overhead rates based onmachine-hours. 2-a.Compute the predetermined departmental overhead rates.(Round your answers to 2 decimal places.) PredeterminedOverhead Rates Molding Department$ Fabrication Department$ 2-b.Compute the total manufacturing costs assigned to Job D-75 andJob C-100. (Round your intermediate calculations to 2decimal places and final answers to the nearest dollaramount.) Total ManufacturingCost Job D-75$ Job C-100$ 2-c.If Smithson establishes bid prices that are 120% of totalmanufacturing costs, what bid price would it have established forJob D-75 and Job C-100? (Round your intermediatecalculations to 2 decimal places, "Total manufacturing cost" andfinal answers to the nearest dollar amount.) Bid price Job D-75$ Job C-100$ 2-d.What is Smithson’s cost of goods sold for the year?(Round your intermediate calculations to 2 decimal places,"Total manufacturing cost" and final answers to the nearest dollaramount.) Cost of goods sold$