Bourbon Company uses a perpetual inventory system and has a highly labour intensive production process, so it assigns manufacturing overhead based on direct labour cost. Bourbon’s predetermined overhead application rate for 2015 was computed from the following data: Total estimated factory overhead $900,000 Total estimated direct labour cost $750,000 The following activities took place in the work in process inventory during April: WIP Inventory A/C April 1 Bal. 15,000 Direct Materials Used 120,000 Other transactions incurred: Indirect material issued to production was $20,000 Total manufacturing labour incurred in April was $162,500, 75% of this amount represented direct labour. Other manufacturing overhead costs incurred for April amounted to $130,000. Two jobs were completed with total costs of $120,000 & $85,000 respectively. They were sold on account for $260,000 & $150,000 respectively. Required: i) Compute Bourbon’s predetermined manufacturing overhead rate for 2015. ii) State the journal entries necessary to record the above transactions in the general journal: a) For direct materials used in April b) For indirect material issued to production in April c) For total manufacturing labour incurred in April d) To assign manufacturing labour to the appropriate accounts e) For other manufacturing overhead incurred f) For manufacturing overhead allocated for April g) To move the completed jobs into finished goods inventory h) To sell the two completed jobs on account iii) Calculate the manufacturing overhead variance for Bourbon and state the journal entries necessary to dispose of the variance. iv) What is balance on the Cost of Goods Sold account after the adjustment v) Determine the balance in work in process inventory on April 30.