Predetermine overhead rate= $136.94Direct labour hours worked in year 3 = 300Overhead Applied Cost= $136.94 x 300 = $41,0821c.Predetermine overhead rate= $136.94Actual Labour hours= 74,000Applied Overhead= Actual labour hours x predetermine overhead rate= $136.94 x 74,000 = $10,133,360Applied Overhead= $10,133,360Actual Overhead= $9,200,000-Over applied= $933,650Since the Applied Overhead is $10,133,360 which is $933,650 greater than the ActualOverhead ($9,200,000), therefore the manufacturing overhead for year 3 is over applied.1d.Working:a.74,000 – 1,745 – 2,700 – 6,110 – 1,300 =62,145b.1,745 + 2,700 =4,445c.6,110 + 1,300 =7,410Directlabour hoursPercentage oftotal costChargeCost of Goods Sold62,145a83.98d$784,003.69gJob AB30 & AB31 (Finishedgoods)4,445b6.01e56,106.95hJob AB35 & AB41 (Work-in-process)7,410c10.01f93,499.36iTotal74,000100.00%$933,560