1)Compute a predetermined overhead rate.

2)Prepare schedules of cost of goods manufactured and cost of goods sold and an income statement.

1 iStanford Enterprises uses job-order costing 2 The allocation base for overhead is direct labor hours. 4 Data for the year just ended S iEstimated total manufacturing overhead cost 6 IEstimated total direct labor hours 7 Actual total direct labor hours 275,000 25,000 27,760 9 Actual costs for the vear: 10i Purchase of raw materials (all direct) 11 Direct labor cost 12 | Manufacturing overhead costs 13 $375,000 $536,300 $302,750 14 ilnventories: Beginning Ending 15j Raw materials (all direct) 16 Work in process 171 Finished goods 18 15,000 11,375 $22,350 $ 26,450 $ 27,875 $34,600 19 iUse the data to answer the following 20 I 21 1. Compute applied overhead and determine the amount of underapplied or overapplied overhead 221 Actual manufacturing overhead cost 23 Predetermined overhead rate