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 $50,300 and its total manufacturing overhead cost to be $90,540.

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

Required:
1.	Calculate the predetermined overhead rate.

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

Raw Materials Inventory					Work in Process Inventory
Beginning Balance	14,400				Beginning Balance	28,400
Purchases	94,500				Direct Materials	68,300
Ending Balance	28,700				Direct Labor	$40,400
					Applied Overhead
					Ending Balance	18,500
Finished Goods Inventory					Cost of Goods Sold
Beginning Balance	40,500				Unadjusted Cost of Goods Sold
Cost of Goods Completed					Adjusted Cost of Goods Sold
Ending Balance	49,000
Sales Revenue					Manufacturing Overhead
		301,000			Indirect Materials	11,900		Applied Overhead
					Indirect Labor	13,600
					Factory Depreciation	12,500
					Factory Rent	6,300
					Factory Utilities	1,700
					Other Factory Costs	9,900
					Actual Overhead	55,900
Selling, General, and Administrative Expenses
Adm. Salaries	27,700
Office Depreciation	18,600
Advertising	13,500
Ending Balance	59,800

3.

Manufacturing Overhead

Overapplied by

DOBSON MANUFACTURING COMPANY
Cost of Goods Manufactured Report and Sold
Direct Materials Used in Production
Total Current Manufacturing Costs	$0
Total Work in Process	$0
Cost of Goods Manufactured
Cost of Goods Available for Sale	$0
Unadjusted Cost of Goods Sold
Adjusted Cost of Goods Sold

DOBSON MANUFACTURING COMPANY
Income Statement
Net Income from Operations