Rockville, Inc Job Nos 1 and 2 Were Completed and Sold on Account

Rockville, Inc., which uses a job-costing system, began business on January 1, 2012 and applies manufacturing overhead on the basis of direct-labour cost. The following information relates to 2012.
▪ Budgeted direct labour and manufacturing overhead were anticipated to be $200,000 and $250,000, respectively.
▪ Job nos. 1, 2, and 3 began during the year and had the following charges for direct material and direct labour: $\begin{array} { c r c } \text { Job No. } & \text { Direct Materials } & \text { Direct Labour } \\1 & \$ 145,000 & \$ 35,000 \\2 & 320,000 & 65,000 \\3 & 55,000 & 80,000\end{array}$ Job nos. 1 and 2 were completed and sold on account to customers at a profit of 60% of cost. Job no. 3 remained in production.
Actual manufacturing overhead by year-end totaled $233,000. Rockville adjusts all under- and overapplied overhead to cost of goods sold.
Required:
A. Compute the company's predetermined overhead application rate.
B. Compute Rockville's ending work-in-process inventory.
C. Determine Rockville's sales revenue.
D. Was manufacturing overhead under- or overapplied during 2012? By how much?
E. Present the necessary journal entry to handle under- or overapplied manufacturing overhead at year-end.
F. Does the presence of under- or overapplied overhead at year-end indicate that Rockville's accountants made a serious error? Briefly explain.