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 $52,000 and its total manufacturing overhead cost to be $78,000.

Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow:

Calculate the predetermined overhead rate

Raw Materials Inventory					Work in Process Inventory
Beginning Balance	13,100	77,400			Beginning Balance	29,300
Purchases	93,400				Direct Materials	68,900
Ending Balance	29,100				Direct Labor	$41,500
					Applied Overhead
					Ending Balance	18,800
Finished Goods Inventory					Cost of Goods Sold
Beginning Balance	40,300				Unadjusted Cost of Goods Sold
Cost of Goods Completed					Adjusted Cost of Goods Sold
Ending Balance	48,600
Sales Revenue					Manufacturing Overhead
		313,000			Indirect Materials	8,500		Applied Overhead
					Indirect Labor	13,300
					Factory Depreciation	12,900
					Factory Rent	6,700
					Factory Utilities	1,400
					Other Factory Costs	8,900
					Actual Overhead	51,700
Selling, General, and Administrative Expenses
Adm. Salaries	27,400
Office Depreciation	19,500
Advertising	14,800
Ending Balance	61,700

3.	Compute over- or underapplied overhead.

DOBSON MANUFACTURING COMPANY
Cost of Goods Manufactured Report and Sold
Beginning Raw Materials Inventory
Plus: Raw Material Purchases
Less: Indirect Material Used
Less: Ending Raw Materials Inventory
Direct Materials Used in Production
Direct Labor
Manufacturing Overhead
Adjustment for Overapplied Overhead
Total Current Manufacturing Costs	$0
Plus: Beginning Work in Process Inventory
Total Work in Process	$0
Less: Ending Work in Process Inventory
Cost of Goods Manufactured
Plus: Beginning Finished Goods Inventory
Cost of Goods Available for Sale	$0
Less: Ending Finished Goods Inventory
Unadjusted Cost of Goods Sold
Manufacturing Overhead
Beginning Raw Materials Inventory
Adjusted Cost of Goods Sold

DOBSON MANUFACTURING COMPANY
Income Statement
Sales Revenue
Cost of Goods Sold
Gross Profit
Selling, General, and Administrative Expenses
Net Income from Operations