Calculating the Predetermined Overhead Rate, Applying Overhead to Production, Reconciling Overhead at the End of the Year, Adjusting Cost of Goods Sold for Under$-$ and Overapplied Overhead

At the beginning of the year, Tseng Company estimated the following:

Overhead

$$180,000$

$90,000$

Direct labor hours

Tseng uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were $8,350.$ By the end of the year, Tseng showed the following actual amounts:

Overhead

$$186,000$

$89,600$

Direct labor hours

Assume that unadjusted Cost of Goods Sold for Tseng was $$216,000.$

Required:

Calculate the predetermined overhead rate for Tseng. Round your answers to the nearest cent, if rounding is required.

$ per direct labor hour

Calculate the overhead applied to production in January. $($Note: Round to the nearest dollar, if rounding is required.$)$

Calculate the total applied overhead for the year.

Was overhead over$-$ or underapplied? By how much?

overhead $

$4.$ Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance.