4 Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $52,500 and its total manufacturing overhead cost to be $84,000. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required 1. Calculate the predetermined overhead rate Predetermined Overhead Rate % of Direct Labor Cost Raw Materials Inventory Work in Process Inventory Beginning Balance Purchases Ending Balance 13,800 94,400 28,800 Beginning Balance Direct Materials Direct Labor Applied Overhead Ending Balance 29,400 69,900 $ 40,200 19,200 Finished Goods Inventory Cost of Goods Sold Beginning Balance Cost of Goods Completed Ending Balance 40,600 Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold 48,100 Sales Revenue Manufacturing Overhead 320,000 9,500 13,600 11,900 6,000 1,600 8,200 50,800 Applied Overhead Indirect Materials Indirect Labor Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead Selling, General, and Administrative Expenses Adm. Salaries Office Depreciation Advertising Ending Balance 26,400 19,200 14,900 60,500 3. Compute over- or underapplied overhead Manufacturing Overhead 4. Prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead. DOBSON MANUFACTURING COMPANY Cost of Goods Manufactured and Sold Report Direct Materials Used in Production Total Current Manufacturing Costs 01 Total Work in Process Cost of Goods Manufactured Cost of Goods Available for Sale 0 Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold 5. Prepare a brief income statement for the company. DOBSON MANUFACTURING COMPANY Income Statement Net Income from Operations