1.

system and applies overhead cost to jobs on the basis of direct materials used In. production (not on the basis of raw materials purchased). Its predetermined overhead rate was based on a cost formula that estimated $122,200 of manufacturing overhead for an estimated allocation base of $94,000 direct material dollars to be used in production. The company has provided the following data for the just completed year: Purchase of raw materials $ 134,000 Direct labor cost $ 90,000 Manufacturing overhead costs: Indirect labor 8 105,200 Property taxes $ 8,900 Depreciation of equipment $ 18,000 Maintenance $ 16,000 Insurance 5 7,800 Rent, building 5 36,000 7 Beginning Ending Raw Materials 5 22,000 $ 11,000 Work in Process $ 46,000 $ 35,000 Finished Goods $ 72,000 S 61,000 Required: 1. Compute the predetermined overhead rate for the year. 2. Compute the amount of underapplied or overapplied overhead for the year. 3. Prepare a schedule of cost of goods manufactured for the year. Assume all raw mater 4. Compute the unadjusted cost of goods sold r the year. Do not include any undera 5. Assume that the $35,000 ending balance in Work in Process includes $8,800 of dir information missing below: ials are used in production as direct materials. pplied or overapplied overhead in your answer. ect materials. Given this assumption, supply the