(a) Why is Lindell Building Products Company using a job order costing system? 

(b) On what basis does Lindell allocate its manufacturing overhead? Compute the predetermined overhead for the current year. 

(c) Compute the amount of the under-overapplied overhead cost for 2018. 

(d) Lindell had balances in the beginning and ending work in process and finished goods accounts as follows: 

Determine (i) the cost of goods manufactured (ii) cost of goods sold for Lindell during 2018. 

Lindell Building Products Company is one of the largest manufacturers and marketers of unique, custom-made residential garage doors in NSW as well as a major supplier of industrial and commercial doors, grills, and counter shutters for the new construction, repair, and remodel markets. Lindel1 has developed plans for continued expansion of a network of service operations that sell, install, and service manufactured fireplaces, garage doors, and related products. Lindell uses a job cost system and applies overhead to production on the basis of direct labour cost. In computing a predetermined overhead rate for the year 2018, the company estimated manufacturing overhead to be $24 million and direct labour costs to be $20 million. In addition, the following information is provided: Actual costs incurred during 2018: Direct materials used $30 000 000 Direct labour cost incurred 21 000 000 Manufacturing costs incurred during 2018: Insurance, factory $ 500 000 7 500 000 1 000 000 Indirect labour Maintenance Rent on building Depreciation on equipment 11 000 000 2 000 000