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 $56,000 and its total manufacturing overhead cost to be $100,800. Several incomplete general ledger accounts showing the transactions that occurred during the most recent accounting period follow Required: 1. Calculate the predetermined overhead rate. Predetermined Overhead Rate % of Direct Labor Cost in the missing values in the T-accounts Beginning Balance Purchases Ending Balance Raw Materials Inventory 13,500 93,100 28,400 Beginning Balance Direct Materials Direct Labor Applied Overhead Ending Balance Work in Process Inventory 30,000 70,000 $ 41,500 19,600 Finished Goods Inventory Beginning Balance 41,000 Cost of Goods Completed Ending Balance 49,400 Cost of Goods Sold Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold Sales Revenue 311,000 Indirect Materials Applied Overhead Indirect Labor Factory Depreciation Factory Rent Factory Utilities Other Factory Costs Actual Overhead Manufacturing Overhead 8,200 13,500 11,700 5,300 2,100 9,800 50,600 Selling. General, and Administrative Expenses Adm. Salaries 26,500 Office Depreciation 19.700 Advertising 14.700 Ending Balance 60.900 3. Compute over- or underapplied overhead. Manufacturing Overhead 4. Prepare a statement of cost of goods manufactured and sold including the adjustment for over- or underapplied overhead. DOBSON MANUFACTURING COMPANY Cost of Goods Manufactured Report and Sold Direct Materials used in Production Total Current Manufacturing Costs Total Work in Process Cost of Goods Manufactured Cost of Goods Available for Sale Unadjusted Cost of Goods Sold Adjusted Cost of Goods Sold 5. Prepare a brief income statement for the company. DOBSON MANUFACTURING COMPANY Income Statement Net Income from Operations