At the beginning of the year, the Company estimated Overhead for the year to be $555,750. It estimated Direct Labor Hours for the year to be 95,000. The Company applies overhead based on direct labor hours. During the month of January only, actual direct labor hours were 7,720. By the end of the year, total actual Overhead was $544,635 and actual Direct Labor Hours were 93,500. Assume that before any adjustment for under-applied or over-applied overhead, that Cost of Goods Sold was $705,000.

1. Calculate the predetermined overhead rate for B Company.

2. Calculate the amount of overhead that would have been applied into Work-in-Process Inventory in January.

3. Calculate the total applied overhead for the year AND tell if it was under-applied or over applied and by how much.

4. Calculate how much Cost of Goods Sold would be after adjusting for any under-applied or over applied overhead.