Analyzing and using manufacturing overhead costs Below are data for Rovelier Company as of December 31,1992.

All accounts have normal balances. Beginning work in process was $49,000 and beginning finished goods was $87,300.
Rovelier's 1992 budget called for production of 800 snowmobiles. On average it takes 26 hours of direct labor per snowmobile at a wage rate of $11 per hour. The manufacturing overhead rate is $6 per direct labor hour. During 1992,920 snowmobiles were produced. Actual direct labor hours averaged 3 per unit more than expected.

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Sales salaries Advertising Raw materials inventory Direct materials used $ 85,400 44,000 126,100 325,000 Work in process 73,900 Indirect labor 22,700 Depreciation, factory 31,000 Property taxes (70 percent production plant) 18,000 Fire insurance (80 percent production plant) 9,800 Sales commissions. 28,500 Administrative sales 167,200 Finished goods 77,300 Direct labor 293,800 Indirect material .... 11,600 Utilities (80 percent factory) 45,000 Rent, office equipment .... 8,700 Depreciation, office..... 17,400 Depreciation, factory equipment 44,000 Sales...... 981,700 Miscellaneous office expense 4,300 Sales returns and allowances 36,100