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 $54,900 and its total manufacturing overhead cost to be $87,840. 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.

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

Raw Materials Inventory					Work in Process Inventory
Beginning Balance	13,700				Beginning Balance	28,600
Purchases	94,900				Direct Materials	69,200
Ending Balance	29,500				Direct Labor	$41,400
					Applied Overhead
					Ending Balance	18,700
Finished Goods Inventory					Cost of Goods Sold
Beginning Balance	41,300				Unadjusted Cost of Goods Sold
Cost of Goods Completed					Adjusted Cost of Goods Sold
Ending Balance	48,000
Sales Revenue					Manufacturing Overhead
		307,000			Indirect Materials	9,900		Applied Overhead
					Indirect Labor	13,300
					Factory Depreciation	11,700
					Factory Rent	6,700
					Factory Utilities	2,200
					Other Factory Costs	9,300
					Actual Overhead	53,100
Selling, General, and Administrative Expenses
Adm. Salaries	26,600
Office Depreciation	18,300
Advertising	14,300
Ending Balance	59,200