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:

Line Item Description	Numerical Data
Overhead	$834,000
Direct labor hours	60,000

Tseng uses normal costing and applies overhead on the basis of direct labor hours. For the month of January, direct labor hours were 5,150. By the end of the year, Tseng showed the following actual amounts:

Line Item Description	Numerical Data
Overhead	$805,000
Direct labor hours	58,000

Assume that unadjusted Cost of Goods Sold for Tseng was $2,840,000.

Required:

1. Calculate the predetermined overhead rate for Tseng. Round your answer to the nearest cent. fill in the blank 1 of 1$ per direct labor hour

2. Calculate the overhead applied to production in January. (Note: Round to the nearest dollar.) fill in the blank 1 of 1$

3. Calculate the total applied overhead for the year. fill in the blank 1 of 1$

Was overhead over- or underapplied? By how much?

OverappliedUnderapplied

overhead fill in the blank 1 of 1$

4. Calculate adjusted Cost of Goods Sold after adjusting for the overhead variance. fill in the blank 1 of 1$