At the beginning of the year, Paxton Company budgeted overhead of $180,000 and 20,000 direct labor hours. During the year, Job #K456 was completed with the fol- lowing information: direct materials cost, $4,140; direct labor cost, $4,000. The aver- age wage for Paxton Company is $10 per hour.

By the end of the year, a total of 21,000 direct labor hours had actually been worked, and Paxton Company incurred the following actual overhead costs for the year:

Equipment lease	$ 5,000
Depreciation on building	20,000
Indirect labor	101,300
Utilities	18,000
Other overhead	45,000

Required

1. Calculate the overhead rate for the year.

2. Calculate the total cost of Job #K456.

3. Prepare the journal entries to record actual overhead and to apply overhead to production for the year.

4. Is overhead over- or underapplied? By how much?

5. Assuming that the normal cost of goods sold for the year is $740,000, what is the adjusted cost of goods sold?