At Allen Company, manufacturing overhead is applied based on direct labor hours. Overhead was estimated to be $540,000 and direct labor hours were estimated to be 360,000.

Actual direct labor hours and actual direct labor costs for the year amounted to 400,000 hours and $700,000.

In addition, Allen Company incurred the following actual costs during the year:

• Administrative expenses, $100,000
• Depreciation expense on fixed assets, $500,000 (80% of the depreciation expense was related to manufacturing activities)
• Indirect material costs, $25,000
• Indirect labor costs, $45,000
• Utility expense on the manufacturing facility, $125,000
• Insurance expense on the manufacturing facility, $35,000
• Marketing expenses, $75,000

• Sales & promotion expenses, $25,000

Allen Company had the following inventory balances at the beginning and end of the year:

	January 1	December 31
Finished goods	$450,000		$675,000
Work in process	600,000		650,000
Raw (direct) materials	350,000		400,000

During the year, the company purchased $150,000 of raw materials and generated sales of $2,500,000.

1. What amount is applied to manufacturing overhead?
2. What is the amount of Manufacturing Costs added for the period?
3. What is the Cost of Goods Manufactured?