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 $54,800 and its total manufacturing overhead cost to be $98,640. 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.

2. Fill in the missing values in the T-accounts.

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.

5. Prepare a brief income statement for the company.

ll in the missing values in the T-accounts.

Raw Materials Inventory					Work in Process Inventory
Beginning Balance	13,300				Beginning Balance	28,700
Purchases	93,700				Direct Materials	69,800
Ending Balance	29,600				Direct Labor	$41,600
					Applied Overhead
					Ending Balance	18,800
Finished Goods Inventory					Cost of Goods Sold
Beginning Balance	40,600				Unadjusted Cost of Goods Sold
Cost of Goods Completed					Adjusted Cost of Goods Sold
Ending Balance	48,200
Sales Revenue					Manufacturing Overhead
		309,000			Indirect Materials	7,600		Applied Overhead
					Indirect Labor	13,900
					Factory Depreciation	12,900
					Factory Rent	5,500
					Factory Utilities	1,800
					Other Factory Costs	8,200
					Actual Overhead	49,900
Selling, General, and Administrative Expenses
Adm. Salaries	26,900
Office Depreciation	18,900
Advertising	14,000
Ending Balance	59,800