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 $57,500 and its total manufacturing overhead cost to be $109,250. Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow: Required 1. Calculate the predetermined overhead rate. Predetermined Overhead Rate 190 % of Direct Labor Cost 2. Fill in the missing values in the T-accounts. Raw Materials Inventory Work in Process Inventory Beginning Balance Purchases Ending Balance 13,700 93,300 28,300 78,700 Beginning Balance Direct Materials Direct Labor Applied Overhead Ending Balance 29,700 68,800 $41,400 18,700 Finished Goods Inventory Cost of Goods Sold Beginning Balance Cost of Goods Completed Ending Balance Unadjusted Cost of Goods Sold 41,200 Adjusted Cost of Goods Sold 49,100 Sales Revenue Manufacturing Overhead 308,000 Indirect Materials Indirect Labor Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead 9,900 13,000 11,700 6,300 2,900 8,400 52,200 Applied Overhead Selling, General, and Administrative Expenses 27,300 18,000 14,000 59,300 Adm. Salaries Office Depreciation Advertising Ending Balance 3. Compute over- or underapplied overhead. Manufacturing Overhead 5. Prepare a brief income statement for the company. DOBSON MANUFACTURING COMPANY Income Statement Net Income from Operations