The following information pertains to Trenton Glass Works for the year just ended.

Budgeted direct-labor cost: 75,000 hours (practical capacity) at $16 per hour Actual direct-labor cost: 80,000 hours at $17.50 per hour Budgeted manufacturing overhead: $997,500 Actual selling and administrative expenses: 435,000 Actual manufacturing overhead:

Required:
1. Compute the firm’s predetermined overhead rate, which is based on direct-labor hours.
2. Calculate the overapplied or underapplied overhead for the year.
3. Prepare a journal entry to close out the Manufacturing Overhead account into Cost of Goods Sold.
4. Build a spreadsheet: Construct an Excel spreadsheet to solve requirements (1) and (2) above. Show how the solution will change if the following data change: budgeted manufacturing overhead was $990,000, property taxes were $25,000, and purchases of indirect material amounted to $97,000.

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Depreciation Property taxes Indirect labor Supervisory salaries Utilities Insurance $231,000 21,000 82,000 200,000 59,000 30,000 Rental of space 300,000 Indirect material (see data below) 79,000 Indirect material: Beginning inventory, January 1 48,000 Purchases during the year 94,000 Ending inventory, December 31 63,000