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 $55,300 and its total manufacturing overhead cost to be $105,070.

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.

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.

Beginning Balance Purchases Ending Balance 14,500 93,900 28,600 28,800 68,700 $41,600 139,100 19,100 79,800 Beginning Balance Direct Materials Direct Labor Applied Overhead Ending Balance 120,000 Cost of Goods Sold Finished Goods In 40,600 120,000 49,400 61,647 Beginning Balance Cost of Goods Completed Ending Balance 111,200 Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Sales Revenue Manufacturing Overhead 316,000 Indirect Materials Indirect Labor Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead 11,100 14,600 12,000 6,700 2,000 8,700 55,100 Applied Overhead Selling, General, and Administrative Expenses Adm. Salaries Office Depreciation Advertising Ending Balance 27,700 18,300 14,800 60,800