1. During the current month, Waterway Company incurs the following manufacturing costs.

(a)		Purchased raw materials of $17,800 on account.
(b)		Incurred factory labor of $38,200.
(c)		Factory utilities of $3,800 are payable, prepaid factory property taxes of $2,810 have expired, and depreciation on the factory building is $9,800.

Record the companys manufacturing costs in its job order costing system.

2. During January, its first month of operations, Ayayai Company accumulated the following manufacturing costs: raw materials purchased $4,100 on account, factory labor $6,100, and utilities payable $2,100. Record the companys manufacturing costs in its job order costing system.

3. Waterway Company estimates that annual manufacturing overhead costs will be $902,000. Estimated annual operating activity bases are direct labor cost $440,000, direct labor hours 50,000, and machine hours 110,000. Compute the predetermined overhead rate for each activity base. (Round answers to 2 decimal places, e.g. 10.50.)

Overhead rate per direct labor cost		enter overhead rate per direct labor cost in percentages	%
Overhead rate per direct labor hour		$enter overhead rate per direct labor hour in dollars
Overhead rate per machine hour		$enter overhead rate per machine hour in dollars