1. Assume that actual overhead is $812,000 in a given year, the overhead rate is $12 per unit, 71,000 units were sold, and 70,000 units were produced. For the end of the year, is overhead underapplied or overapplied? By how much?

2.If the end-of-period balance for cost of goods sold is $92,000 and underapplied overhead is $11,000, what is the ending balance in the Cost of Goods Sold account after adjusting for the underapplied overhead?

3. Alles Company uses a job costing system that applies factory overhead on the basis of direct labor dollars. No job was in process on February 1. During the month of February, the company worked on these three jobs:

	Job Number
	B10	C44	G15
Direct labor ($8/hour)	$ 38,000	?	$ 12,000
Direct materials	46,000	65,000	?
Overhead applied	?	25,750	7,800

During the month, the company completed and transferred Job B10 to the Finished Goods Inventory. Jobs C44 and G15 were not completed and remain in Work-in-Process at the cost of $188,650 at the end of the month. Actual factory overhead costs during the month totaled $44,500.

Required:

1. What is the predetermined factory overhead rate?

2. Compute the amount of underapplied or overapplied overhead for February.