Custom Granite Inc. uses an absorption cost system for accumulating product cost. The following data are available for the past year:

Raw materials purchases totaled $236,200.

Direct labor costs incurred for the year totaled $799,900.

Variable manufacturing overhead is applied on the basis of $5.5 per direct labor hour.

Fixed manufacturing overhead is applied on the basis of machine hours used.

When plans for the year were being made, it was estimated that total fixed overhead costs would be $674,150, and that 48,500 machine hours would be used during the year.

The direct labor rate is $19 per hour.

Actual machine hours used during the year totaled 84,700 hours.

Actual general and administrative expenses for the year totaled $305,700.

Inventory balances at the beginning and end of the year were as follows:

	Beginning of Year			End of Year
Raw materials	$	36,000		$	25,500
Work in process		25,100			52,000
Finished goods		105,500			122,300

Required:

Calculate the predetermined fixed manufacturing overhead rate.

Prepare a T-account for Raw Materials to calculate the cost of raw materials used.

Calculate the variable manufacturing overhead applied to work in process. Could the applied amount of variable overhead differ from the actual amount of variable overhead incurred by Custom Granite for the year?

Calculate the fixed manufacturing overhead applied to work in process. Could the applied amount of fixed overhead differ from the actual amount of fixed overhead incurred by Custom Granite for the year?

Prepare a T-account for Work in Process to calculate the cost of goods manufactured.

Prepare a T-account for Finished Goods to calculate the cost of goods sold. Calculate the cost of goods manufactured and not sold.