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Required $2$

The ending balance of its Work in Process Inventory account was $$79,000,$ which included $$28,000$ of direct labor costs.

Determine the direct materials costs in ending Work in Process Inventory.Tasty Bakery applies overhead based on direct labor costs. The company reports the following costs for the year: direct materials,

$$730,000$; direct labor, $$3,800,000$; and overhead applied, $$2,280,000.$

Determine the company's predetermined overhead rate for the year.

The ending balance of its Work in Process Inventory account was $$79,000,$ which included $$28,000$ of direct labor costs.

Determine the direct materials costs in ending Work in Process Inventory.

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Determine the company's predetermined overhead rate for the year.

We take the information available to determine what predetermined overhead rate was used for the period. We back into this

rate as follows: