Dobson Manufacturing Company uses a job order cost system with manufacturing overhead applied to products on the basis of direct labor dollars. At the beginning of the most recent period, the company estimated its total direct labor cost to be $52,300 and its total manufacturing overhead cost to be $88,910. Several incomplete general ledger accounts show the transactions that occurred during the most recent accounting period which is given in second requirement. Required: 1. Calculate the predetermined overhead rate.

3. Compute over- or underapplied overhead. 4. Prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead.

2. Fill in the missing values in the T-accounts Raw Materials Inventory Work in Process Inventory Beginning Balance Purchases Ending Balance 13,100 94,200 29,400 Beginning Balance Direct Materials Direct Labor Applied Overhead Ending Balance 28,600 68,100 $40,100 18,100 Finished Goods Inventory Cost of Goods Sold 40,400 Beginning Balance Cost of Goods Completed Ending Balance Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold 50,000 Sales Revenue Manufacturing Overhead 319,000 Indirect Materials Indirect Labor Factory Depreciation Factory Rent Factory Utilities Other Factory Cost:s Actual Overhead 9,800 13,500 12,700 6,700 2,900 8,000 53,600 Applied Overhead Selling, General, and Administrative Expenses Adm. Salaries Office Depreciation Advertising Ending Balance 26,100 18,700 13,700 58,500