Deep in the New England woods, Orchestrated for You (OY) has a small workshop where they build stringed instruments for sale to budding musicians. OYs accountant has long used a normal costing system and applied manufacturing overhead on the basis of direct labor hours. The companys budget for the current year includes the following predictions:

Budgeted total manufacturing overhead $5,000,000

Budgeted total direct-labor hours 400,000

During November, the company worked to complete the following two orders (production jobs):

Job No. 334: consisting of 76 violins Job No. 232: consisting of 110 cellos

The events of November are described as follows:

1. One thousand square feet of Maplewood was purchased on account for $6,600.
2. Four hundred pounds of wire (used to manufacture strings) was purchased on account for $6,800.
3. The following requisitions were submitted to the inventory warehouse on November 6th:
   1. Requisition 808: 480 square feet of Maplewood at $7 per square foot to be used for violins.
   2. Requisition 12: 1,500 pounds of wire at $6 per pound to be used for cellos.
   3. Requisition 324: 25 gallons of clear coat instrument wax at $10 per gallon.
4. An analysis of labor time cards revealed the following labor usage for November:
   1. Direct labor: Violins, 1,700 hours at $60 per hour
   2. Direct labor: Cellos, 1,750 hours at $40 per hour
   3. General factory cleanup totaling $4,900
   4. Factory supervisory salaries totaling $14,000
5. Depreciation of the factory building and equipment during November amounted to $11,500
6. Rent paid in cash for factory equipment used during November was $1,650
7. Heat and light costs on the factory incurred during November amounted to $2,800. The invoices for these costs were received, but the bills were not paid in November.
8. November property taxes on the factory were paid in cash, totaling $1,900.
9. The insurance cost covering factory operations for the month of November was $3,800. The insurance policy had been prepaid.
10. The cost of salaries and fringe benefits for sales and administrative personnel paid in cash during November amounted to $9,000.
11. Depreciation on sales office equipment and space amounted to $5,900.
12. l. Other selling and administrative expenses paid in cash during November amounted to $1,300.
13. Job 232 was completed on November 20.
14. Sixty percent of finished goods from job 232 was sold on account during November for $3,000 each.
15. Double check that all overhead has been applied for the period
16. Close the overhead account at the end of the period.
17. Orchestrated for You is carrying forward a loss from prior years and therefore has an effective tax rate of 24%

The November 1 balances in selected accounts are as follows:

Cash ...................................... $35,000

AR: Accounts Receivable...... ....... $32,000

Prepaid Insurance....................... $6,000

Raw-Material Inventory............... $120,000

Manufacturing Supplies Inventory... $600

WIP: Work-in-Process Inventory.... $56,000

FG: Finished Goods Inventory ...... $180,000

Accumulated Depreciation on PPE... $80,000

AP: Accounts Payable ................. $16,500

Wages Payable ......................... $98,500

Required:

1. Draw T-accounts for Overhead and Work in Process for November.
2. calculate the predetermined Overhead rate AND apply Overhead
3. Calculate the over-applied or under-applied overhead for November.
4. Record the journal entry to close the overhead account for November.
5. Build an income statement

(This is the full question and all information provided)