900 The University of Chicago Press uses job-order costing to cost each job. It allocates factory overhead on the basis of direct manufacturing labor costs. The FOH rate is 160% of direct labor costs. The following data (in thousands) pertain to 2014: Direct materials $ 800 Direct materials used 710 Indirect materials 100 Direct labor 1,300 Indirect labor Depreciation on manufacturing equipment 400 Miscellaneous manufacturing overhead 500 Manufacturing overhead Cost of goods manufactured 4,120 Revenues 8,000 Cost of goods sold (before adjustment) 4,020 Inventories, January 1, 2014: Materials 100 Work-in-Process 60 Finished Goods Control 500 1. Set up the DM, WIP, & FG T-accounts. 2. Determine FOH over/under applied 3. Prepare insignificant and significant adjusting entries. 2. Excog Radiator Company uses a job-order cost system with a single manufacturing overhead cost pool and machine-hours as the cost-allocation base. The following data are for 2014: Budgeted manufacturing overhead costs $4,800,000 Overhead allocation base Machine-hours Budgeted machine-hours 80,000 Manufacturing overhead costs incurred $4,900,000 Actual machine-hours 75,000 Machine-hours data and the ending balances (before proration of under-or over allocated overhead) are as follows: Actual Machine-Hours 2011 End-of-Year Balance Cost of Goods Sold 60,000 $8,000,000 Finished Goods Control 11,000 1,250,000 Work-in-Process Control 4,000 750,000 2011 En 1. Compute the FOH rate for 2014. 2. Compute the under-or over applied manufacturing overhead for 2014. 3. Pepare insignificant and significant adjusting entries