Baird, Inc. estimates manufacturing overhead costs for the 2019 accounting period as follows:

Equipment depreciation	$	191,700
Supplies		19,500
Materials handling		33,900
Property taxes		14,100
Production setup		20,500
Rent		45,000
Maintenance		38,700
Supervisory salaries		225,400

The company uses a predetermined overhead rate based on machine hours. Estimated hours for labor in 2019 were 201,000 and for machines were 128,000.

Required

1. Calculate the predetermined overhead rate. (Round your answer to 2 decimal places.)

2. Determine the amount of manufacturing overhead applied to Work in Process Inventory during the 2019 period if actual machine hours were 143,000. (Do not round intermediate calculations.)

a.	Predetermined overhead rate		per machine hour
b.	Applied manufacturing overhead

Pawhuska Company estimates that its overhead costs for 2018 will be $500,000 and output in units of product will be 250,000 units.

Required

1. Calculate Pawhuskas predetermined overhead rate based on expected production. (Round your answer to 2 decimal places.)

2. If 20,000 units of product were made in March 2018, how much overhead cost would be allocated to the Work in Process Inventory account during the month? (Do not round intermediate calculations.)

3. If actual overhead costs in March were $41,300, would overhead be overapplied or underapplied and by how much? (Do not round intermediate calculations.)

a.	Predetermined overhead rate		per unit
b.	Allocated overhead cost
c.	Overhead costs

Baird Company started year 2 with $30,000 in its cash and common stock accounts. During year 2 Baird paid $22,500 cash for employee compensation. Assume this is the only transaction that occurred in year 2.

Required

1. Determine the total amount of assets at the end of year 2, assuming Baird is a manufacturing company and the employees were paid to make products.

2. Determine the amount of expense recognized on the year 2 income statement, assuming Baird is a manufacturing company and the employees were paid to make products.

3. Determine the total amount of assets at the end of year 2, assuming Baird is a service company.

4. Determine the amount of expense recognized on the year 2 income statement, assuming Baird is a service company.

Manufacturing:
a.	Total assets
b.	Total expenses
Service:
c.	Total assets
d.	Total expenses