3. The following information has been made available to you: Actual manufacturing overhead $55,000 Estimated manufacturing overhead $56,000 Actual direct labor hours 7,200 Estimated direct labor hours 7,500 Required: a) Compute the manufacturing overhead rate b) Compute the manufacturing overhead applied c) State whether the amount posted to the WIP account was over or under-applied for manufacturing overhead and also state the dollar amount. d) Indicate whether cost of goods sold should be increased or decreased in order to adjust the balance to actual costs (based on your answer in part (c).

3b.). Use the following information to perform the calculations in (a) (c) below: Sales $101,000 Administrative salaries 15,000 Indirect labor 12,000 Direct labor 35,000 Marketing expense 18,000 Materials purchased 25,000 Production machine depreciation 5,500 Materials inventory, Jan 1, 2014 35,000 Materials inventory, Dec 31, 2014 48,000 Finished goods inventory, Jan 1, 2014 19,000 Finished goods inventory, Dec 31, 2014 26,000 Work in process, Jan 1, 2014 18,000 Work in process, Dec 31, 2014 15,000 Required: a) Calculate Total Manufacturing Costs for 2014 b) Calculate Cost of Goods Manufactured for 2014 c) Calculate Cost of Goods Sold for 2014