Cost Flows; Application of Overhead Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $455,600, and management budgeted 33,500 direct labor-hours. The company had no materials, work-in-process, or finished goods inventory at the beginning of April. These transactions were recorded during April: a. April insurance cost for the manufacturing property and equipment was $1,800. The premium had been paid in January b. Recorded $1,025 depreciation on an administrative asset. C. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect material) d. Paid factory utility bill, $6,510 in cash. e. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. f. Incurred and paid other factory overhead costs, $6,270 g. Purchased $24,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. h. Requisitioned $18,500 of direct materials and $1,600 of indirect materials from materials inventory. i. Incurred miscellaneous selling and administrative expenses, $5,660. j. Incurred $3,505 depreciation on manufacturing equipment for April. k. Paid advertising expenses in cash, $2,650. l. Applied factory overhead to production on the basis of direct labor hours. n. Made sales on account in April: $56,410. The cost of goods sold was $47,860 Required 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the April: events 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on April 30. 4. Prepare a schedule of cost of goods manufactured and sold. 5. Prepare the income statement for April. Cost Flows; Application of Overhead Dream Makers is a small manufacturer of gold and platinum jewelry. It uses a job costing system that applies overhead on the basis of direct labor hours. Budgeted factory overhead for the year was $455,600, and management budgeted 33,500 direct labor-hours. The company had no materials, work-in-process, or finished goods inventory at the beginning of April. These transactions were recorded during April: a. April insurance cost for the manufacturing property and equipment was $1,800. The premium had been paid in January b. Recorded $1,025 depreciation on an administrative asset. C. Purchased 21 pounds of high-grade polishing materials at $16 per pound (indirect material) d. Paid factory utility bill, $6,510 in cash. e. Incurred 4,000 hours and paid payroll costs of $160,000. Of this amount, 1,000 hours and $20,000 were indirect labor costs. f. Incurred and paid other factory overhead costs, $6,270 g. Purchased $24,500 of materials. Direct materials included unpolished semiprecious stones and gold. Indirect materials included supplies and polishing materials. h. Requisitioned $18,500 of direct materials and $1,600 of indirect materials from materials inventory. i. Incurred miscellaneous selling and administrative expenses, $5,660. j. Incurred $3,505 depreciation on manufacturing equipment for April. k. Paid advertising expenses in cash, $2,650. l. Applied factory overhead to production on the basis of direct labor hours. n. Made sales on account in April: $56,410. The cost of goods sold was $47,860 Required 1. Compute the firm's predetermined factory overhead rate for the year. 2. Prepare journal entries to record the April: events 3. Calculate the amount of overapplied or underapplied overhead to be closed to the Cost of Goods Sold account on April 30. 4. Prepare a schedule of cost of goods manufactured and sold. 5. Prepare the income statement for April