College Station Manufacturing Inc. is studying the results of applying factory overhead to production. The following data have been used: estimated factory overhead, $60,000; estimated materials costs, $50,000; estimated direct labor costs, $60,000; estimated direct labor hours, 10,000; estimated machine hours, 20,000; work in process at the beginning of the month, none.

The actual factory overhead incurred for November was $80,000, and the production statistics on November 30 are as follows:

Required:
1. Compute the predetermined rate, based on the following:
a. Direct labor cost
b. Direct labor hours
c. Machine hours
2. Using each of the methods, compute the estimated total cost of each job at the end of the month.
3. Determine the under or overapplied factory overhead, in total, at the end of the month under each of the methods.
4. Which method would you recommend?Why?

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Materials Direct Labor Costs Direct Labor Hours 1,000 2,000 2,500 2,600 4,500 Machine Hours 3,000 Date Jobs Completed Nov. 10 Nov. 14 Nov. 20 Job Costs 101.. $ 5,000 7,000 8,000 9,000 $ 6,000 12,000 13,500 15,600 29,000 102....... 3,200 4,000 3,400 103....... In process Nov. 26 104....... 105..... 10,00 6,500 106.. 400 process 11,000 2,400 1,500 21,600 13,000 Total..... $50,000 $78,500