a. Pocono Cement Forms expects $1,120,000 in overhead during the next year. It does not know whether it should apply overhead on the basis of its anticipated direct labor hours of 70,000 or its expected machine hours of 35,000.

Determine the product cost under each predetermined allocation rate if the last job incurred $1,560 in direct material cost, 84 direct labor hours, and 70 machine hours. Wages are paid at $14 per hour.

	Labor Hours	Machine hours
Cost of the job	$	$

b. Complete the information in the cost computations shown here:

Raw materials
Beginning inventory	$343
Purchases	1,535
Materials available for use	$
Ending inventory	321
Materials used in production	$

Work in process inventory
Beginning inventory	$934
Materials used in production
Direct labor	1,537
Overhead applied
Manufacturing costs incurred	$22,472
Ending inventory	934
Cost of goods manufactured	$

Finished goods inventory
Beginning inventory	$
Cost of goods manufactured
Goods available for sale	$25,036
Ending inventory
Cost of goods sold	$21,823