2 34 Estimates made at the beginning of the period Estimated direct labor hours 263,183 5 Estimated variable manufacturing overhead per direct labor hour $2.50 6 Estimated total fixed manufacturing overhead $310,000 7 8 Actual amounts as of the end of the period 9 Actual total manufacturing overhead incurred 10 Actual total direct labor hours worked 11 Unadjusted cost of goods sold 12 13 14 15 16 17 18 19 20 1. Compute total manufacturing overhead estimated at the beginning of the period Fixed manufacturing overhead Variable manufacturing overhead Total manufacturing overhead $715,000 205,000 $4,905,000 2. Compute the predetermined overhead rate used to apply manufacturing overhead to jobs 3. Compute the total amount of overhead applied to jobs during the period 4. Compute the amount of overapplied or underapplied overhead (if overapplied, present as a positive number; if underapplied, present as a negative number) 5. Compute the new balance in cost of goods sold after adjusting for over- or under- applied overhead.